Commercial Real Estate and Residential Property
Commercial real estate and residential property investments are popular assets that are used to build tax-sheltered income in self-directed IRAs.
Residential investments include single and multi-family homes, rehabs, and rental property. Tax liens and deeds can be purchased with self-directed funds. Private mortgages are also a popular asset permissible in these plans.
Commercial investments encompass office space, restaurants, strip malls, and condominiums, and more. You can choose to rent the property out for consistent income over time. You can also sell it now or in the future to make a profit.
Both residential and commercial investments have the potential to garner desired returns but are unique in their benefits. Before deciding on which alternative to add to your retirement portfolio, explore the advantages of both.
Know the Rules
You are unable to vacation in or otherwise benefit from any real estate investment in your IRA until you retire.
You are unable to manage property yourself; you must hire a third party to do so.
Your IRA is unable to purchase property from or sell property to any disqualified person, which includes you.
All income and expenses must flow directly into and out of the retirement plan.
Advanta IRA handles hundreds of real estate investment transactions every year for our clients who use self-directed retirement plans. Our staff works closely with clients to ensure the administrative details of all investments are performed within the regulations of the IRS.