How to Own Real Estate in Your Self-Directed IRA
As you know, a self-directed IRA is a retirement account that allows you to invest in real estate and grow your nest egg nicely in a relatively short period of time. This type of account allows you to hold a variety of investments, including real estate in it. On top of that, investing with a self-directed IRA can be entirely tax-free.

You may currently hold a 401(k) or an IRA account at commonly used brokerage houses. If so, those particular brokerage houses service these accounts with products they offer, such as stocks, bonds, ETFs, and mutual funds. Self-directed IRAs are different in that they must be set up with a trust company and you truly self-direct the investments you wish to participate in. Doing that could mean buying yourself a business, owning investment property, or even real estate notes.

That in turn could mean an amazing growth for your portfolio, one which in general is much more difficult to attain through the stock market. If stock market returns are between 10 and 15 % on average, investing in real estate in a self-directed IRA could mean return on investment much higher than that.

Owning real estate with your self-directed IRA is truly intended to build wealth, and there are rules that must be followed. For one thing, the account must be set up properly. And if you own a property in your self-directed IRA portfolio, it must truly be for investment purposes. Generally speaking, real estate is a good investment as it can be very profitable.

Investing in real estate in your IRA can mean:
• Income
• Appreciation
• Control
• Leverage

Holding real estate in a self-directed IRAs can also offer a viable alternative to 1031 Exchanges as both defer gains.

You can invest in the local, national, and even international real estate market and purchase many types of investments.
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Gabrielle is passionate about helping people just like you to leverage themselves and grow financially and personally. She does this in two ways: as a realtor, specializing in residential and investment real estate in San Francisco and beyond, and as an expert in helping people roll their retirement funds (IRA and 401K money) from the much more volatile stock market into California real estate. Find out more and e-mail her at gdahms@sbcglobal.net or call her at 415-200-7202.