What if you want to invest in real estate in Vail or Beaver Creek but all of your money is in your IRA or 401k rollover account? Did you know that you can use your retirement funds to buy real estate? Self-directed IRAs are becoming more and more popular with savvy investors. The process is relatively simple and allows you to actually receive the income from rental properties if you are of retirement age. If you are not yet of age to withdraw from your retirement account, you can invest the proceeds any way you see fit in your self-directed account or move those funds back to another investment. The IRS does have strict rules in place regarding the personal use of real estate held in an IRA. If use of a property is paramount in your decision making, then there are other alternatives available for you involving annuities which we can discuss. The benefits of buying rental real estate in your IRA are numerous and include the possibility of predictable monthly cash flow (with long-term rentals), price appreciation and less volatility than the stock market. You can also form an investment partnership with others and combine your IRA investment if you want to buy but either wants to limit your exposure or do not have enough money of your own to buy the right property. I have recommendations for selecting an appropriate rental property for this type of investment as well as suggestions for administrators of self-directed retirement accounts.
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