Invest My IRA in Real Estate?

The Advantages of Investing Your IRA in Texas Real Estate

As the stock market continues to plummet and retirement accounts shrink, any hope of a secure future is put into doubt. However, not everyone's portfolio is in jeopardy. In fact, many individuals are investing their retirement accounts not in stocks or bonds, but in Texas real estate. Click here for more info

Compared to the rest of the country, the Texas markets continue to see positive growth due to the low cost of living, diverse economies and an attractive business climate. Opportunities are out there for the people (and companies) who are poised to take advantage of the current market. Sticking to conservative investment fundamentals can in the types of real estate transactions to invest in can lead to a great payoff.

To use your IRA for this type of investment, you must first find an independent IRA custodian who allows real estate investments. Most brokerage firms and banks limit IRA funds to stocks, bonds, annuities, and mutual funds. However, the Internal Revenue Code allows people to purchase land, trust deeds, residential property, and the like, and to hold the funds in a traditional, Roth, or a Simplified Employee Pension (SEP) plan IRA.
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Instead of limiting yourself to invest in real estate as an equity investment just to realize a gain from its appreciate, you might give some thought and consideration to investing in real estate notes, trust deeds or private mortgages.  You can limit your exposure and risk by only lending a portion of the value of the real estate while receiving returns upwards of 9-12% with a worst case scenario being that you own the real estate for the amount that the note was written for (for example, a 60% Loan on a 500k property would only be an investment of 300k).

You’ll need to make sure follow the rules for investing in Real Estate.  Your custodian will help you do this but you will also need to find a trust deed/note investment servicer to help you keep things in order. You can withdraw your Real Estate Holdings from your IRA account once you reach retirement age (age 59½ or older).  For additional information on how this works, go to:
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