Real Estate IRAs Can Provide Big Benefit for Agents, Brokers and Their Clients

Real estate agents and brokers are often the most important element in the industry of buying and selling homes, commercial property, and vacant land. A reputable, successful agent expertly navigates their client’s purpose and budget to match them with the perfect piece of property. These professionals help families find homes and business-minded people locate commercial buildings and parcels to generate income in one way or another. Another avenue real estate agents and brokers are exploring is the realm of self-directed IRAs. Why? They know there is certain class of investors who use these accounts to make real estate investments to build wealth for retirement.

A self-directed retirement plan gives account owners total control over choosing their own investments based on their own knowledge and expertise. These individuals take charge of their own futures by acquiring alternative investments—beyond the typical stock, bond, or mutual fund—to build retirement income on a tax-free or tax-deferred basis. The pool of alternative investments permissible in these accounts is vast. However, the most popular investment in a self-directed account is real estate, hence, the term real estate IRA.

Investors who use real estate IRAs offer an entirely new client base for agents and brokers. In fact, by many accounts, the rebound of the housing market in multiple regions across the United States over the past few years can largely be attributed to investors. While not all of these investors were using IRAs, many savvy individuals realize the potential for retirement income and use self-directed accounts to make lucrative real estate investments.

By learning how self-directed accounts work, real estate professionals become a valuable and sought after resource for these investors. Knowledgeable agents and brokers can develop new leads, better serve existing clients who are investors and tap into the estimated $6.2 trillion of retirement income of self-directed account owners. Imagine the possibilities…

Common investments include rehab-and-flip projects, rental and commercial properties, and long-term holdings such vacant land and single or multi-family housing—to be sold at a later date for a potential larger profit margin. But, that’s not all! Real estate investments aren’t limited to pieces of property. Clients of Advanta IRA also use their self-directed IRAs to invest in mortgage notes, tax liens and deeds, building bonds, and more.

If you are an agent or a broker, learning how people use retirement funds to invest in this manner should be exciting. Your knowledge and expertise in how self-directed accounts work can increase your client base, which, in turn has the potential to increase your overall sales and commissions. Diversity is essential to the success of any retirement portfolio—and in the same manner, diversity in the types of clients you serve can become a key element to your own success. The ability to add investors to your network of clients by offering knowledge of real estate IRAs and how they work can be crucial in building your own business—and aid in your own endeavors to achieve financial independence when you retire.

If you would like to learn more about real estate IRAs and how you can become an informational powerhouse for your clients, call Advanta IRA today! We offer weekly courses at no cost for individuals, investors, and professionals to learn about the benefits of self-directed accounts. We also offer specialized courses through our Advanta U program, which allows real estate agents and brokers to become IRA Specialists and listed as professional resources on our web site.

If you’d like more information about Advanta U or simply want to know more about real estate in an IRA, please contact us.

About Jack Callahan

Jack proudly earned his bachelor’s degree in finance and multinational business from Florida State University and his law degree from the University of Florida College of Law. He established Advanta IRA in 2003 and has steadily nurtured and grown the company and the team every year since. Prior to founding Advanta IRA, Jack delivered specialized counsel to real estate investors, small business owners, and real estate professionals on tax, legal and financial matters. As an industry expert, Jack is a frequent speaker on self-directed retirement plans. He is an accredited continuing education instructor for the Florida and Georgia Bar Associations, Florida and Georgia Real Estate Commissions, and The American Institute of Certified Public Accountants.