Choosing the Right IRA Real Estate Investments

by Darren Mitchell

Choosing the right IRA real estate investments requires having a lot of knowledge. That is not the idea of this article though. Do you know how to use an IRA real estate investment to manage, purchase or sell in today's volatile market? Do you have any knowledge of the positive and negative aspects of lending your IRA vs. purchasing rental property turnkey or by completely looking after it by yourself?Our goal is to help identify which particular plan is the best option for you as a real estate investor, regardless of whether you have experience or not. Many people are not aware that either they can start a self-directed IRA to their advantage by collecting the rewards of tax-free or tax deferred IRA real estate investments. It is a great way to build wealth in the current economic climate. The advantage involves the ability to leverage the IRA by making cash offers to the bank. Therefore, the IRA owners are able to purchase properties at huge discounts. The difference between the property's fair market value and the purchase price is called equity wealth. In addition, your IRA real estate investment has the ability to produce rental income from these purchases. The reason this happens is that the homes that the IRA has purchased are offered for rent to people who cannot acquire financing due to credit issues or any issue for that matter.As you can see, this is a wonderful opportunity. You are using equity to secure property and rental income is paid to your IRA and thus your IRA is growing tax-free or tax deferred. The best part of this type of IRA real estate investment is the advantage of its turnkey nature.If you chose to lend to an investor using a promissory note for example, you would still be getting the rental income but you would not have the equity profit. Lending is still not a bad option but you will always be wondering when your money will be returned. The decision on which kind of IRA real estate investments is best suited to you is completely up to you. As mentioned before, lending the money is a good idea but you could always be worrying about when you will get it back.Purchasing your own IRA real estate investment gives you more control and gives you the opportunity for much higher profits. To do this with little or no effort you must find the right opportunity for it to be as turnkey an operation as possible. The idea is to give you a nice income for little effort along with the time to enjoy your profits.

Source