Benefits of Purchasing Real Estate in Your IRA

Through the increase of the value of the home appreciation

• All earnings are Tax deferred or Tax-Free
• There are no capital gains when the property is sold
• You can purchase all types of property
• You may leverage the property
• 1031 Exchange is not necessary

Some Basic Requirements:

• The entire transaction must flow through the IRA.  The funds in this account cannot be commingled with other funds. In other words, you must use your IRA for the earnest money, down payment, and acquisition. 
• Your IRA must hold legal title to the property.
• You (or family members) may not have personal use of the property.
• Buying real estate from an unrelated party with cash is the simplest way of investing in real estate withyour IRA; however it is possible to invest in real estate through a down payment and leveraging (obtaining a mortgage) by meeting specific crtieria.

Type of Real Estate Your IRA Can Buy

Raw land, Commercial Property, Residential (e.g., rental) property, real estate options, as well as loans (mortgages), secured by real estate.

Getting Started:

• Do Your Research. Understand the rules and requirements of a Self-Directed IRA, and set up your account with a qualified administrator.
• Decide On A Type of Self-Directed Account - "CheckBook" or "Regular". Some account types require you to mail invoices to the administrator for processing, while others provide a checkbook set up whereby you pay your own invoices. Know the benefits of both.
• Take inventory of your requirements and capabilities when deciding on the types of real estate investment you are best suited for.
• Find The Right Properties. “Cheap” does not necessarily mean “A Wise Investment”. With the aid of a knowlegable Realtor create a plan with specific property criteria.  Choose a Realtor who will provide you with information on thoroughly researched properties that will fit your investment objectives . Contact us for information on investing in Real Estate in the Boulder Area. 

Premier Boulder Properties does not offer investment, tax, financial or legal advice to clients.  Individuals who believe they need advice should consult with the appropriate professional(s) licensed in that area of expertise.  This section of our website is devoted to providing clients and potential clients with educational information regarding purchasing real estate for investment purposes, and is in no way intended as investment advice.