Self Directed IRA For Real Estate – What Are the Rules in ?

starting your self directed ira for real estate in  Texas

A self-directed IRA can be a great investment vehicle… even for real estate! Before you buy your next investment property… read this article first!

We get asked questions all of the time from savvy investors who we work with here at EZHouseBuyers.com.

Most of the questions surround buying investment properties in Texas… which we of course know a lot about.

But one part of buying an investment property / rental property is how are you going to pay for it?

And, can I use my IRA to buy local investment properties?

Self Directed IRAs for Real Estate – Can You Use Them To Buy Rental Properties?

First off, IRA refers to an individual retirement account.

IRA’s traditionally hold investments like stocks, mutual funds, etc…. mainly because that’s the mainstream way most people save for retirement.

But, since you’re reading this article you know that real estate can be a GREAT option for increasing your wealth.

But… how can you use your IRA to grow your retirement fund, earn the tax benefits of the IRA, and the benefits of real estate too?

Though the self-directed ira real estate is increasingly being taken up by investors, you should do certain things ensure that the law is being followed to the letter when you use your IRA for local Texas real estate investments.

Some Simple SDIRA (Self Directed IRA) for Real Estate Rules To Follow

No “Self Dealing”

If you’re using your self-directed ira for real estate in you are forbidden from self-dealing.

Self-dealing is outlawed with your SD IRA in the sense that it can’t purchase land or property (both commercial and residential) for the owner or any family member to reside in.

It is also prohibited from selling property or land to the owner of the IRA or family members in the process of business dealings in .

The Process of Buying with Your Self Directed IRA

There are very specific rules that you have to follow if you’re using your SD IRA to pick up Texas properties.

Once an you provides the correct documentation for purchasing the local investment property to the self-directed ira custodian, the custodian will start the purchasing process on behalf of the self-directed ira real estate.

All the costs related to the purchase of the property are channeled through the self-directed ira for real estate; hence it’s vital that it must have enough cash to pay for these costs.

Failure of this will lead to the forfeiture of tax benefits and the penalties to be paid by the IRA.

Choose The Type Of Self Directed IRA Wisely To Use It For Your Real Estate Investments

There are lots of options when it comes to self-directed IRA’s.

Not all SD IRA’s allow you to buy real estate in them… so you’ll have to do your research to find the best SD IRA custodians so you can start buying properties in it.

NOTE: We’ve worked with many SD IRA companies and we’ve found the best providers who are very experienced in working with real estate within an IRA. Call us today at 877.529.5115 or email us through our Contact page and we can give you information on the best SD IRA companies for Texas real estate investments.

Checkbook Control

Some Self Directed IRAs have more restrictions than others.

As an example… some of them require that you submit the investment details to them… they analyze it… then they send the cash from the account.

But there are accounts that give you whats called “check book control”.

An investor in self-directed ira for real estate with control of the checkbook is able to make purchases by just writing checks rather than having to go through the lengthy process of having to pass it through the custodian first. This lets you take advantage of deals that you have to act quickly on (which many of our local investment properties go fast).

Your Role In The Investment After The SD IRA Purchases It

You as the owner of the self directed IRA account has the ability to really manage the investment in a hands on manner. The roles include: receiving checks for rent payments from tenants, managing the properties, etc… everything you’d normally do as the owner of an investment property.

Of course, there are more guidelines that you have to follow if you plan on using your self directed IRA for real estate in … so make sure you do your homework and do these two things immediately:

  1. Find a great self directed IRA company / custodian: This is the first step. You have to get this in place before you even think about purchasing anything through your IRA. If your current IRA holder won’t allow you to buy and hold real estate in it… call us at 877.529.5115 and we’ll refer you to the best local custodians… and they’ll be able to help you transfer your current IRA to your new self directed IRA.
  2. Find a couple great investment property experts, like us at EZHouseBuyers.com.  One of the best ways to get great properties here in Texas is by working with a professional investment property company like ours. We find high discount properties (both single family and multi-family) all around and sell them to investors like you at discounts so you can turn them into solid profitable rental properties.  Join our Preferred Buyers List Here >>

We Can Help You Get Rolling With Your SD IRA For Real Estate.

Just reach out to us at the phone number below or send us an email… and we’ll walk you through the process, point you to the best SD IRA resources locally in , and get you on our Preferred Investment Property buyers list.

Call Us For More Info On Buying Texas
Real Estate In Your IRA at 877.529.5115

Don McClain

About Don McClain

Don McClain offers genuine solutions for Texas home and professional property owners who need to sell quick and investors seeking to develop their portfolio for superior returns. Don McClain has been presented on various media outlets, such as, Business News-makers and House Talk radio show, due to his expertise in the real estate industry and growing several real estate companies.

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