First start off with a self-directed IRA. You may be able to take funds from other accounts such as 401(k)s or SEP IRA’s, etc., to initiate your new self-directed plan. Yes, the IRS allows us to invest in traditional or alternative investments that are not publicly traded. News has it that the real estate market may have hit bottom. You can read it here at Realty Times. Buy low and sell high has been the investors motto and what better time to buy real estate, than now. Interest rates have also started to rise, yet another indication of perfect timing to buy. The hard part is determining what is low and what is high and with all the on-line and print news reflecting the current Real Estate conditions, I don’t think anyone willing to venture onto this investment strategy would be misinformed.
The catch to using your self-directed IRA to invest in real estate is that it cannot be your primary residence. It must be for investment purposes only. If you owned a rental property somewhere you’d like to vacation to, let’s say a condo in Maine, you would not be able to use that condo in Maine for even one day of the year.
There are multiple benefits to investing in this type of IRA. You should seek the assistance from one of several custodial companies, such as Guidant Financial, if you’re not comfortable making this venture on your own. Visit http://www.iraaa.org/ for more information on using your IRA to invest in real estate.
While you’re mulling this over, think of investing in Maine! Visit us at meservier.com to search for over 25,000 Maine properties.