By Daniel Hanlon
Daniel Hanlon of Entrust IRA Administration, Inc.
Did you know that since 1974, individuals have able to purchase investment real estate with their retirement money as opposed to having it sit in stocks? Individuals who choose this option don’t pay any penalties and their earnings inside their account are tax deferred (or tax free in the case of a Roth IRA). It’s actually quite simple. Instead of holding XYZ mutual fund, they are holding 123 Main Street in their IRA. Rather than waiting for the market to go up (or down) the account holder receives a steady return of rental income from his/her investment property that goes directly back into their IRA.
“I never knew this!” or, “You can’t do that!” seem to be the most common responses I hear when I speak about this little-known fact. You can indeed do this, and it’s a great way to grow your business in this buyer’s market. Next time you speak with a prospective buyer, consider asking them “Did you know you can buy investment property with your IRA?” The client’s answer will likely be ‘no’ and this is an additional way that you can be seen as an expert by your clients.
All types of real estate can be held in an IRA – residential, REOs, raw land and even commercial property. We all know that deals are around every corner- this is your chance to take advantage of it! There are lots of people sitting on the sidelines watching these unbelievable deals pass them by. Savvy investors are snatching up properties at a discount as they know a great deal when they see one. Oftentimes, clients dream of being able to invest in real estate but don’t know where to find the funds; now you can show them how!
Want to learn more about purchasing investment real estate with retirement funds?
Contact Daniel Hanlon at Entrust IRA Administration in downtown Chicago.
312-753-6383
Good to know! Actually I should say “Thanks for the reminder!”