Real Estate IRA - A Special Type of IRA
A real estate IRA is a type of self directed individual retirement account – IRA - used for the purpose of investing in real estate. Using an IRA to invest in real estate although is not widely known has been possible since the inception of the self directed IRA in 1974. The Real Estate IRA opens up a huge range of alternative investment possibilities and cash especially for investors who already comfortable in investing in real estate and for those investors who are tired of the ups and downs of the stock market.
With a real estate IRA, you can invest your retirement funds in real estate, but also in traditional options such as stocks, bonds, and mutual funds. In order for an investor to participate in real estate investments, the IRA must be transferred to an IRA custodian that will allow real estate within their planned document. But make sure to do your due diligence first.
Most real estate IRA custodians will allow investors to hold real estate in their IRA portfolio allowing them to purchase raw or vacant land, rental or residential properties, and commercial buildings. Whereas other real estate IRA custodians will allow investors to invest in additional options such as foreign property, leveraged property and tax liens. For a short list of self directed real estate IRA custodians go to Google or Yahoo and type in real estate IRA custodian.
