Investing in real estate with a self directed IRA or 401(k) is really a simple process.  As we educate investors on the fantastic opportunities to grow their retirement wealth by diversifying into solid assets such as real estate, this basic fact can sometimes get lost in the shuffle.

There are complexities involved.  No doubt.  An investor needs to select the right investment platform for their specific needs.  There are certain IRS guidelines that apply to the use of retirement funds for investing in real estate.  There are the details involved in properly implementing the investment platform.  Our job at Safeguard Financial is to handle these details, and provide you with a powerful and easy to use investment platform that will help you achieve your goals.

The bottom line is this… we do the heavy lifting, so you can focus on successfully putting your retirement dollars to work.

Funding a Real Estate transaction with an IRA or 401(k) is a systematic process that starts with setting up a Self Directed plan that best suits your needs.

For some individuals, a Checkbook IRA with an LLC (Limited Liability Company) investment platform works best.   And, for small business owners, sole proprietors, independent contractors and entrepreneurs with no employees, a Solo 401(k) is most likely the best option.

After setting up the Self Directed plan, the Real Estate transaction becomes the focus.  The first step is to locate a property that meets certain criteria established by the investor.  At that point, the remaining steps are no different than if the investor was using non-qualified (personal cash) funds.

At closing, the property is titled in the name of the Self Directed IRA LLC or 401(k) plan and the investor then begins handle the details of either rehabbing or renting the property.

It’s at this point where potential investors, who are in the process of being educated about Self Directed plans, sometimes become a bit confused.  The most common question is “what about revenue and expenses and how are they treated?”

The answer is quite simple.  Much like managing your own personal checking account, expenses associated with the property (improvements, maintenance, taxes, utility bills, etc) must come from the plan checking account.

All income (rents/gains on sales) must be deposited in the plan checking account.  Gains continue to be tax exempt.  No tax filings are required.  That’s all there is to it.

It’s as simple as 1-2-3.

There really is nothing complicated about owning property inside a “self-directed” retirement plan.  And the flexibility and ease of operation when using a plan with checkbook control makes owning Real Estate in your IRA or  401(k) a “real” pleasure.

If you are ready to take control of your retirement investing and seize the fantastic growth opportunities currently available in real estate, please contact us today for a no obligation consultation.  Our expert IRA advisors will put their years of experience to work guiding you through the process.  And we promise to make it simple.

Safeguard Financial
www.IRA123.com
877-229-9763