Real Estate Investing With a Reit IRA

Real estate is land consisting of the structures and land on it, and its accompanying natural resources like water, minerals or crops; and its accompanying liens, which are the rights-secured claims against the property itself that one can acquire by buying it. There are various real estate investment strategies. One may buy low-priced properties and convert them into higher priced ones by improving them or making minor repairs. One may buy properties at a low price and sell them at a high price, again, improving or making minor repairs to them. One may even hold onto a property for a long time and rent it out to raise funds for one’s children or retire.

Most of the Real Estate investing strategies concentrate on the development of real estate and the increase in the value of the land, whether through building new houses, renovating existing homes or converting old homes into comfortable residences. A few investors purchase Real Estate directly from the owner, and build or repair the house as needed until the buyer takes over and moves out. Other investors build condominiums and town homes, assemble the apartment building to form a village, and then lease or sell the available homes. Still other real estate investors build single-family residences and fix them up to become fashionable dwellings. No matter what kind of real estate investment strategy you choose, it is very important to purchase properties that will eventually appreciate in value.

Before you make any investment decision, whether it is a buying or selling or rental property purchase decision, it is important to research thoroughly all of your options. A Reit IRA may be your best option if you have a desire to become involved in real estate investment. You are able to set aside money in an IRA trust account and take out loans against that fund, thereby creating a second income stream. You will receive tax advantages if you invest in a Real Estate IRA and use the funds to purchase real estate. You will not, however, receive the tax advantages if you use your IRA to invest in a brokerage account and invest for the company itself, as that would be considered self-dealing. If you are concerned about self-dealing, you may want to consider the options described above for rental property purchase and/or an investment in a real estate investment trust.