Buying Real Estate With Roth IRA

Buying real estate with Roth IRA accounts is a gold mine, if you get it right. Or years of stress and hassle if you get it wrong.

Let me explain how you can get involved buying real estate with Roth IRA funds in a way that is low-risk or even no-risk.

You are aware that most people put their IRA funds into stocks, bonds or bank certificates. The main reason seems to be that their financial advisers see the biggest commissions for themselves in these instruments, and that they know investing in real estate is a lot of work and that they will never get any commissions from the capital growth that a property will achieve in years to come.

This is just selfishness. Because buying real estate with Roth IRA funds can be safe and profitable. Actually, it can be very profitable, if your investment began at the bottom of a real estate price cycle.

What you must do is get a self directed Roth IRA set up by a custodian who knows what he is doing, then either find a property you can purchase, renovate and rent out on your own, or select a turnkey company which invests funds from a group of Roth IRA holders and can negotiate lower costs for you and the group.

The first option — buying and renting a property on your own — gives you the maximum return on your investment. It also requires considerable work and stress as repairs need to be made and renters come and go.

The other, turnkey option is attractive because if the real estate business offering the turnkey investment is efficient, reliable and experienced you can ride the growth of value in your investment without having to put in the sweat and bear with the stresses of doing it alone. In return you give away a small portion of the profit.

Let’s say you look on the Internet and find a company which is using investor funds in a prudent, frugal and conservative investment program in real estate that has a market. What you need to do is talk with their sales people about buying real estate with Roth IRA funds. If they have experience in using those funds you will be on to a winner. Because as the property rises in value your tax free profits will also grow.

A final word as you consider buying real estate with Roth IRA funds. Even in these difficult economic times here are many people like you, who are profiting from the capital growth property can give. Have a look around on the Internet and find some companies that offer turnkey investments in real estate and know about self directed IRA funds. If you need a web site to begin at, have a look at mine. It has a lot of useful information and a recommendation for buying real estate with Roth IRA disbursements. This may be an attractive option for your IRA funds.