Investing in Rental Properties and Rehabs in an IRA is Easier than You Think

If you’re on the brink of making a decision to open a self-directed IRA—read on to find out how investing in rental properties and rehabs has the potential to produce significant income for your retirement. If you have knowledge in the industry, that’s a plus. But, even if you don’t, you can draw on professionals such as realtors, building contractors, home inspectors, and even other investors for advice and help. Building tax-sheltered income with these assets is easier than you think.

How to Find Investments

Here is your reality. You probably already know many people who can help you identify assets.  You may also know professionals who can provide expert advice andColorful pink and grey cottages with white Key West-style trim and tin roofs, perfect rental property investments. guidance on what you might encounter when dealing with these investments. So, it’s not like you have to go it alone. You can draw on those relationships to help you succeed.

Additional resources to find investments:

If you are a realtor, a contractor, or any other real estate professional, you can also use the tools of your trade to make investments for your retirement.

Since you work in the real estate industry, you know what to look for in an investment property. And, you’re in a unique position to find a great deal and turn a profit as the perfect property comes on the market. Rentals and rehabs may be right up your alley.

Investing in Rental Properties

Rental properties in an IRA can provide a steady stream of income to build your retirement nest egg. You have a variety of properties to choose from, including single family homes, duplexes, triplexes, and apartment complexes. Additional options include vacation homes, condos, and real estate syndications. If the property already has tenants, it can be even easier to start making a profit right away.

Investing in Rehab-and-Flips

Rehabs are a great way to use the funds in your self-directed IRA to invest in a property that you want to fix and flip. You can purchase the right property at a good cost, make needed improvements and updates in a short amount of time, and get it on the market quickly. You already know what to look for! Done right, rehabs have the ability to produce a greater return on your money in a short amount of time.

Tips on Investing in Your IRA

  • Income is deposited directly into your IRA on a tax-sheltered basis.
  • All expenses related to investments must be paid with IRA funds.
  • You and/or any disqualified persons are not allowed to live in or use the property.
  • All maintenance and renovations must be done by a third-party contractor. And, while this may not be ideal (in your mind) if you are a contractor, as the IRA owner you can still oversee the project and decide what needs to be done.
  • For rental properties, a property manager must handle the day-to-day tasks and maintenance. Remember, a well-maintained property appreciates in value. You can capitalize on the appreciation potential if you decide to sell the property in the future.

So, what are you waiting for? If any of the above information about investing in rental properties and rehabs in an IRA piqued your interest, contact Advanta IRA to discuss your options. Our team is happy to explain in greater detail how the process works to build the retirement wealth you deserve.

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About Scott Maurer

Scott Maurer, Vice President of Sales for Advanta IRA, is a recognized expert in the field of self-directed IRAs. With a law degree from the University of Florida and as a designated Certified IRA Services Professional (CISP), Scott’s keen understanding of rules and regulations fuels his passion to educate others on the power of investing in alternative assets using self-directed IRAs. Scott is a frequent guest on retirement and investing webinars and podcasts, and he has shown thousands of individuals how to achieve financial freedom by teaching them how to use their retirement funds to invest in private placements, real estate, private lending, and more. Throughout his two decades in the industry, he has watched numerous unique investments unfold, giving him great perspective of what is possible when people take control of their retirement funds and investing decisions.