March 28, 2016

Investors who are interested in purchasing a rental property won’t want to overlook the benefits of buying property within a retirement account. In addition to unique tax-benefits associated with IRAs and HSAs, real estate held within a self-directed retirement account grants account owners the ultimate control over their asset. They can control every facet of their lease, their property’s rental rates, and assign the property manager and their duties.

With a self-directed IRA, you can use your personal knowledge of the local market to pick a property that you believe will perform well for your retirement. If you don’t have a lot of real estate investment knowledge, you can depend on an investor-focused real estate professional to help you find the perfect rental property for your IRA.

A self-directed IRA or HSA can purchase any type of real estate, including residential, commercial, raw land, agricultural, and more. Providing it has the cash to do so, your account can buy the property outright, making the IRA or HSA  the title holder. If your account doesn’t have the cash to cover the full purchase price of a rental property, it can partner with a person, company/entity, or another IRA or HSA. It can also secure a non-recourse loan to buy rental property.

After your IRA has purchased a rental property, the account holder holds the reins for all decisions to be made for the property. That may include the hiring of a property manager (or other non-disqualified person or entity) to handle the day-to-day cash flow and operations, or you can work directly with your self-directed IRA provider to pay vendors and other bills out of your account.

IRA property owners can use convenience tools like Rentometer to stay in step with the local rental market. They can also use Rentometer’s tenant screening tool to check into the backgrounds of all future tenants, or the property management tool to help keep their management tasks and expenses organized.

A self-directed IRA allows investors to select who does the work on your rental property, and what improvements are made to the real estate. If you don’t want to do the work involved with managing your IRA real estate, you can hire a trusted property manager to take care of the property for you. Investors can us the Professional Services Directory on to find professional resources to service their IRA real estate. Remember, it’s your IRA that pays the bill, not you as the IRA holder.

With a self-directed IRA, you don’t have to settle for managed investments. Maintain total control of your retirement investments by putting your personal market knowledge to work for you. Visit New Direction today to learn more about real estate investing with your IRA today!

Source: This article was published with permission from New Direction IRA.  You can download their FREE step-by-step Real Estate IRA Investing Guide here.