Friday, October 08, 2004
You CAN Use Your IRA to Invest in Real Estate in North Carolina
You CAN reap tangible benefits this year with hands-on management of your self-directed IRA!
Think of your IRA as a Harvest Bowl.
It is a vessel into which you can place what is attractive to you, even round it out “fruits” other than stocks, bonds and mutual funds. Consider real estate, for example— raw land, historic properties, condos –- all to be found in abundance here in our North Carolina Appalachian mountains. If you want to broaden your IRA portfolio, the Greater Asheville area is an excellent harvesting field, with EscapeHOmes.com reporting ASHEVILLE, N.C. as being #1 for investing in second homes: http://www.escapehomes.com/cities/Asheville/
And think of it this way; investing in real estate has certain benefits:
First of all, you can see it and touch it!
You can leverage this investment if you choose
The potential of a cash stream as well as market appreciation exists with income properties
You know WHERE it IS.
You can use an IRA for real estate investments whether you are a “ hands-on” kind of person or an investor who prefers relying on someone else's expertise. I recommend that you take the time to decipher the KIND of fruits and veggies you want to put in your Harvest Bowl, and that you also do some solid research into self-directed IRAs prior to making selections.
NOTE: To buy real estate you may have to find an independent administrator to serve as a trustee or custodian. If you choose to hire an administrator, you will want to talk to several experienced professionals before making your final selection.
Consider a self-directed Roth IRA for your real estate investments. And understand that there ARE IRS hurdles involved. The government has a lot of rules when it comes to using retirement funds for real estate, for example, the IRS allows you to use your land or building investment, but not while it is IN your IRA. You could buy a second home, rent it to someone else, put the rental income in your IRA, but not live there. When you retire, you would take the house as a distribution. Then you can move in. By the way, in the meantime, you can’t rent the house to your spouse, grandparents, parents, children, grandchildren, etc., but you could rent it to your brother or sister while it's in your IRA.
Usually we suggest to our clients that the IRA is best when used for true investment property. Here is where your accountant or financial consultant can be a big help. S/he can do a good bit of the homework for you in terms of research.
Contact us at www.janeAnne.com to discuss broadening your IRA investment plan.
Think of your IRA as a Harvest Bowl.
It is a vessel into which you can place what is attractive to you, even round it out “fruits” other than stocks, bonds and mutual funds. Consider real estate, for example— raw land, historic properties, condos –- all to be found in abundance here in our North Carolina Appalachian mountains. If you want to broaden your IRA portfolio, the Greater Asheville area is an excellent harvesting field, with EscapeHOmes.com reporting ASHEVILLE, N.C. as being #1 for investing in second homes: http://www.escapehomes.com/cities/Asheville/
And think of it this way; investing in real estate has certain benefits:
First of all, you can see it and touch it!
You can leverage this investment if you choose
The potential of a cash stream as well as market appreciation exists with income properties
You know WHERE it IS.
You can use an IRA for real estate investments whether you are a “ hands-on” kind of person or an investor who prefers relying on someone else's expertise. I recommend that you take the time to decipher the KIND of fruits and veggies you want to put in your Harvest Bowl, and that you also do some solid research into self-directed IRAs prior to making selections.
NOTE: To buy real estate you may have to find an independent administrator to serve as a trustee or custodian. If you choose to hire an administrator, you will want to talk to several experienced professionals before making your final selection.
Consider a self-directed Roth IRA for your real estate investments. And understand that there ARE IRS hurdles involved. The government has a lot of rules when it comes to using retirement funds for real estate, for example, the IRS allows you to use your land or building investment, but not while it is IN your IRA. You could buy a second home, rent it to someone else, put the rental income in your IRA, but not live there. When you retire, you would take the house as a distribution. Then you can move in. By the way, in the meantime, you can’t rent the house to your spouse, grandparents, parents, children, grandchildren, etc., but you could rent it to your brother or sister while it's in your IRA.
Usually we suggest to our clients that the IRA is best when used for true investment property. Here is where your accountant or financial consultant can be a big help. S/he can do a good bit of the homework for you in terms of research.
Contact us at www.janeAnne.com to discuss broadening your IRA investment plan.
