info@pittrealtygroup.com

Brian R Pitt, M.B.A.
Broker / Realtor
Direct: (818) 640-4756
brian@pittrealtygroup.com


Lindsay C. Pitt
Realtor
Direct: (301) 351-9827
Lindsay@pittrealtygroup.com





Did You Know You Could Purchase Real Estate With Your IRA?


Would you like to purchase your retirement home at today's soft prices? Move into it when you turn 59 ½ and legally pay no taxes on the appreciation or income earned?
 
         

If so, buying real estate using the money in your Individual Retirement Account (IRA) might be a lucrative decision for you. You may have heard stories about people who have purchased real estate with the money in their IRA, but perhaps thought it was too complicated to do yourself. 

First step is to put yourself in control of your IRA by rolling over funds into a self-directed IRA with a custodial company experienced in real estate holdings. We work with PENSCO and have found them to be very knowledgeable. Consult with your tax advisor to decide which type of IRA would be best for your situation. Several firms offer self-directed IRAs, it's recommended that you use the company that offers the most education and a network of experienced professionals.

Then you choose which investments you'll hold in your IRA portfolio. You may choose from thousands of investments including stocks, bonds, notes, mutual funds and any type of real estate. You may NOT use the money to buy life insurance, collectibles (e.g., artwork, antiques, metals, gems, and most coins) and S corporations.

Due to IRA restrictions, most banks will NOT lend money to purchase real estate through an IRA. Therefore, the IRA owner must obtain what is called a NON-RECOURSE loan in order to purchase real estate if they cannot pay the entire purchase price in cash. Your IRA cannot directly or indirectly purchase real estate from a disqualified person. 

In the simplest transaction, you direct your IRA to purchase real estate from an unrelated party and pay cash for it. You do not use the real estate for any personal reasons while it is in your IRA (i.e., you treat it strictly as an investment), you have no special issues.

Your IRA will pay tax on UDFI (Unrelated Debt Financed Income), which is the income and/or capital gains attributable to the leveraged portion. (UDFI is taxed at the trust tax rate because an IRA is treated as a trust for this purpose.)

With real estate prices down in most of the United States, you may benefit from purchasing a retirement home or condo now. Rent the property until you retire. All rental income goes directly into your IRA. All expenses will also be paid out of your IRA.  If the property is being held in a Roth, the title may be transferred to you when you reach 59 ½ with absolutely no due tax on the distribution. It's never too late to get started; this one financial move could add thousands of dollars to your retirement fund.

Call us today and inquire about this unique process!!

We are Trained Professionals who can help facilitate this Wealth Building tool for you.

 © 2021 Agent Image All rights reserved. | Terms | Sitemap Design by Agent Image - Real Estate Web Site Design