By J.P. Dahdah, Founder & CEO of Vantage
If you want to diversify your portfolio then using your Self-Directed IRA to invest in real estate will reveal just how easy it can be.
Below are three reasons why using a Self-Directed IRA to invest in real estate is convenient.
1. No personal loan. Your financials and your personal income will not play a factor in deciding to invest in real estate. By deciding to use an IRA to invest in real estate, you do so with the knowledge that you must purchase this property with cash funds allocated from your Self-Directed IRA. You cannot put down a down payment with your IRA and then try to apply for a personal loan, because the IRA regulations don’t allow for you to co-mingle your personal expenses with investment expenses.
2. Use it as an income property. By using an IRA to invest in real estate, you open the door for added income. Some trusted administrators advise that by purchasing a home with retirement investment funds, investors open themselves up to better returns. With an income property the rent your tenants pay could create the great return you were hoping for.
3. Make a profit. With the high volatility stocks and mutual funds experience, investors might see less than they expected in their retirement accounts when it comes time to withdraw their distributions. By investing in real estate, you have the advantage of getting a tenant to pay rent and the even greater possibility of eventually being able to sell this home for a profit during a favorable market.
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or Info@VantageIRAs.com.