Tag Archives: Roth IRA

Some Rules For Buying Real Estate With Roth IRA

Posted on by

If you are interested in buying real estate with Roth IRA funds, take some advice from an experienced investor. There are successful examples of a roll over IRA buying real estate and there are some failures. Learn from the mistakes of others and you can be one of the latest success stories.

Everyone makes mistakes, but when it comes to buying real estate with Roth IRA money, mistakes are costly. Let’s start with choosing the wrong custodian and go from there.

Here’s an unsuccessful example of a roll over IRA buying real estate. A man chose to take a roll-over from his traditional account and chose a custodian that offered self-investing. He deposited the funds into the account well within the 90 day time period to avoid IRS penalties.

Once he started reading the fine print, he realized that the custodian he had chosen took 45% of his earned interest on un-invested cash balances. He also learned that for each transaction, he would be charged fees ranging from $25-$150. He did a little research and found a different custodian that only charged a reasonable annual fee, while offering more investment options.

When buying real estate with Roth IRA money, you will almost always have an “un-invested cash balance” and you are likely to conduct numerous transactions per year. So, per-transaction fees can really add up.

The man truly believed that a roll over IRA buying real estate was the right choice for him, but he realized that he had chosen the wrong custodian. Instead of transferring the funds, he took another roll-over that year.

The IRS only allows one tax-free rollover per year. So, the total dollar amount of the fund had to be included in “other income” at tax time. The result was a devastating bill that almost bankrupted him.

This man, whose name I won’t mention, made two mistakes. First, he didn’t read the fine print or shop around BEFORE he signed up with the custodian. Second, he failed to read the IRS rules for roll-overs and was unaware that transfers were a better choice.

Breaking the self-dealing or indirect benefit rules is responsible for some of the failures, when it comes to a roll over IRA buying real estate.

Buying real estate with Roth IRA funds must be kept an “arms-length”. Your account cannot buy from you or for you. Those are some of the rules that you need to know before you begin.

Knowledge is everything when it comes to the success of a roll over IRA buying real estate.

A different man grew the value of his account from $20,000 to over a million in less than three years. He started out slowly by flipping vacant lots, making $1000 profit on each transaction.

Now, he holds the mortgages on several properties. He’s only one of the success stories.

Buying real estate with Roth IRA money can be highly profitable, as long as you get the information that you need, ahead of time.

Considering today’s economic environment, selecting IRA real estate turnkey solutions can be the best investment strategy for building your retirement wealth.

Visit my website now to learn more about investing your Roth IRA money in real estate. Using a turnkey solution can be the best investment strategy to accomplish your financial goals.

Buying Real Estate With Roth IRA

Posted on by

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.