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Have you ever met a retiree who always seemed contented and always seemed to have money to burn? They always seem to have a smile on their face don't they. They probably made their retirement money with a self directed independent Retirement Account or IRA, and possibly pointed their IRA towards real estate. If you can read on for a few minutes, I will try to point you in the right direction, so you too can have a smile on your face when you are purchasing real estate in your IRA. When you add the benefits of a self directed IRA with your knowledge of real estate, The government in its wisdom, allows you to attract a tax rebate for every dollar you put into your IRA account in the year that you put it in, and you don't have to pay any tax on your profits until you withdraw the money in your retirement. This means you have the power of compound interest working for you over and over again. The ROI is based on your knowledge of real estate and not on the yo yo effect of the stock market. How Do I Purchase Property In Self Directed IRAs? This is one of the most commonly asked questions your management trust is asked. (1)Open an account with your management trust, and fund the account through a rollover, cash contribution or money transfer. (2)Find the property you want to invest in, making sure you follow all the self directed IRA rules. Your management trust will guide you in following the rules. (3)Complete all the necessary paper work that your management trust will give you. (4)Check that the proper titles are on your paper work. Your management company, your name, IRA etc. It will all be laid out for you. The catch word is simplicity. (5)Make sure that all payments to and all expenses go through your IRA. When you are ready to sell your investment ie your property, your management trust will supply all the paper work, and will work with you and your title company/closing attorney to complete the transaction. All the profits from the sale are tax free and they go back into your IRA for your next investment. Purchasing real estate in your IRA The following are some prohibited transactions with a self directed IRA: You can not buy property for personal use (present or future) with IRA funds. You can not buy property from any of your family members or relatives. You can not use your IRA as security for a loan. You can not borrow money from your IRA. You can not sell property to your IRA. This is worth repeating, ie when purchasing real estate in your IRA, funds must come directly from your IRA. Your trust manager will send the funds directly to the title company/closing agent/attorney as per your instructions. Any expenses related to your IRA investment must be paid from your IRA and any income must be paid into your IRA. There, that wasn't too bad was it? Purchasing real estate in your IRA is really quite simple. THERE IS A SIMPLER MORE TURNKEY APPROACH. Go to the resource box at the bottom of this article and click on the url and go to my website. You will find more information on real estate investing there. Gordon Hall is an ardent reviewer of IRAs and other retirement funds. Visit his website now at :http://www.double-your-ira.com to discover which retirement funds Gordon recommends after far ranging and extensive comparisons.
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