Buying Real Estate In An IRA

• The stock market has tanked, and investors have lost confidence! Almost everyone's stock market portfolio is down 30% or more. Buying real estate just makes sense.
  
  
• Real estate prices are dramatically lower than just two years ago, creating tremendous upside through both a higher future resale value and the rent you collect in the interim!
  
  
• There is a tremendous amount of foreclosures and auctions where you can pick up beautiful homes for 20% or less of their value!
  
  
• Growth and profit is tax-free! Because the home is in a qualified retirement plan, you can buy a home today, then sell it in three years for $300,000 profit - and not pay taxes on the profit! Instead, you can use the full profit to buy even more properties!

• Traditional IRA's
  
• 401(k)s
  
• Keoghs
  
• SEP IRAs
  
• Roth IRAs
  
• Profit Sharing Plans
  
• Qualified Annuities
  
• Deferred Compensation Plans
  
• Coverdell Education Savings (ESAs) a.k.a. Educational IRAs

• Through the increase of the value of the home appreciation
  
• Through the accumulation of rental income
  
• Through TAX-FREE growth accorded to retirement plans (yes, this means you can sell a home at a $500,000 profit and not pay taxes on it!)

Example: Purchase Price Of $200,000

Year	4% Growth	8% Growth
1	$208,000.00	$216,000.00
2	$216,320.00	$233,280.00
3	$224,972.80	$251,942.40
4	$233,971.71	$272,097.79
5	$243,330.58	$293,865.62
6	$253,063.80	$317,374.86
7	$263,186.36	$342,764.85
8	$273,713.81	$370,186.04
9	$284,662.36	$399,800.93
10	$296,048.86	$431,785.00
20	$438,224.63	$932,191.43
25	$533,167.27	$1,369,695.04

Example: Rental Income, $1,500 per month (no rent increase)

Year	Annual Rent	Aggregate Rent
1	$18,000.00	$18,000.00
2	$18,000.00	$36,000.00
3	$18,000.00	$54,000.00
4	$18,000.00	$72,000.00
5	$18,000.00	$90.000.00
10	$18,000.00	$180,000.00
20	$18,000.00	$360,000.00
25	$18,000.00	$450,000.00

• Purchasing real estate in an IRA is allowable under the ERISA Act of 1974.
  
  
• Purchasers have to have a separate investment account with the required documentation, plus abide by a few simple rules; namely, that funds in this account cannot be commingled with other funds. In other words, you can't pay for improvements with your personal money, and rent must be deposited into this account. Doing so voids the tax-free benefits of your IRA.
  
  
• Most brokerage houses do not support - and therefore allow - investors to hold real estate in an IRA. Therefore, individuals purchasing real estate in their IRAs must use an approved provider for both their account set-up and documentation. (We have included a list of those vendors below.)

• Read and Research. Make sure you understand the rules and requirements of a Self-Directed IRA. You'll have to set up your account with a qualified administrator, not commingle funds, and abide by a few other rules.
  
  
• Decide On A "CheckBook" or "Regular" Self-Directed Account. Some qualified administrators require you to mail invoices to them for processing, while others provide a checkbook set up whereby you pay your own invoices. Make sure you know the benefits of both. Some recommended administrators appear below.
  
  
• Know Your Personal Temperment. You'll not only have to spend time selecting and closing on properties, but depending on how many you purchase and for what reason, may want to rent out your new homes. Make sure you know your requirements and capabilities.
  
  
• Find The Right Properties. Don't just buy houses because they are cheap. Make sure you have a plan as to where you want to buy, why you want to buy there, and whether or not you will rent the properties. Use your real estate agent for guidance.

• www.MyRealEstateIRA.com
  
  
  • Do research / Request more info
  
  
  
• www.GuidantFinancial.com
  
  
  • To have info sent to you
  • To read more / do your own research