Investing In Real Estate With Your Ira

Investing In Real Estate With Your Ira – A real estate IRA is a self-directed individual retirement account (called an SDIRA) that you can use to hold rental property. First Western Federal Savings Bank of South Dakota has been helping people buy rental properties using our famous no-claims loans since 2008, so we know the benefits. If you’re new to real estate IRAs, read on to learn more about how this unique type of SIDRA can benefit you.

Real Estate IRAs Help Diversify Your Portfolio. A diversified portfolio (ie, having a variety of financial assets) is essential to good financial health. A real estate IRA is a valuable asset in a diversified portfolio because the asset is held independently of any stocks or bonds. If the market crashes, your real estate IRA is protected. Real Estate Appreciates Over Time Real estate has historically increased in value over time, making it a safe long-term investment. Real estate’s status as an appreciating asset complements the IRA’s long-term investment horizon. Your Investments Can Provide Income While you can’t use an SDIRA to buy real estate for yourself or your family, you can rent your property to tenants and collect rent as part of your IRA real estate investment strategy. This allows you to have a passive income in addition to the value of the land itself. You are not personally liable. Perhaps the most important benefit of a real estate IRA is that you are not personally liable for any losses. When setting up a SIDRA and purchasing a property, you must submit a security deposit in lieu of an offer. In the event of a loss, your collateral replaces your assets, protecting you from significant losses.

Investing In Real Estate With Your Ira