Why Use a Self-Directed Roth IRA For Real Estate Investing
Have you ever thought of purchasing property solely for investment purposes? Not sure of what or how to do it? Or maybe you did or do not have the money or credit to do so.
Did you know that you could use your IRA for this very purpose? Although, you do need to have a 'self-directed IRA' and not a 'traditional IRA' to be able to invest in real estate.
But what's even better, is the self-directed Roth IRA.
A self-directed Roth IRA gives you the largest diversified portfolio possible with 100% control over investment decisions.
The self-directed Roth IRA is like the Donald Trump of IRAs, it's an IRA on steroids.
It totally rocks! Traditional IRAs have a trustee or custodian, required by law, who look out for their own best interests, leaving the account owner with almost no control over investment options.
But with a self-directed Roth IRA at the account owner not only has 100% control over investment options, but can also use the IRA to purchase and invest in real estate.
Traditional IRA methods of investment only payout a ROI of about 4%-9% annually.
While the self-directed Roth IRA, if used in real estate investing, pays out a ROI of 15%-30% or more annually.
And if you use your self-directed Roth IRA for purchasing and investing in real estate and roll the profits right back into the IRA, the profits are tax-free.
You see normally a person pays what's called 'capitol gains' taxes on profits from real estate investing.
Let me explain this in an example, remembering that all figures, time, etc...
are for the sake of an example only.
Example: Say you are just a regular person and you bought a property for $50,000 and later sold it for $70,000.
That would be a $20,000 profit that you would have to pay a 15% capital gains tax on equaling $3,000.
Using the exact same figures, if you used your self-directed Roth IRA to purchase and invest in that property at $50,000 and later sold it for $70,000 and rolled the profits directly back into your self-directed Roth IRA you would pay no capital gains taxes.
It would be 100% tax-free and you would have the full $70,000 to reinvest later.
How great is that! If you want to learn more about the rules of self-directed IRAs you can look up these articles online: 'Different IRAs and Their Investment Options', and 'IRA Investing in Real Estate: The Revolution to Retirement Planning'.
It is obvious to see why, if given the choice, a person should rollover to a self-directed Roth IRA.
Does the concept of 100% autonomy with a self-directed Roth IRA scare you? It shouldn't and I'll tell you why.
And as for the problem of not knowing what to do, or how to do it? There are teams, groups, and companies trained and out there for this very purpose and they are ready to help you.
The only thing you have to do is decide which one is right for you.
Did you know that you could use your IRA for this very purpose? Although, you do need to have a 'self-directed IRA' and not a 'traditional IRA' to be able to invest in real estate.
But what's even better, is the self-directed Roth IRA.
A self-directed Roth IRA gives you the largest diversified portfolio possible with 100% control over investment decisions.
The self-directed Roth IRA is like the Donald Trump of IRAs, it's an IRA on steroids.
It totally rocks! Traditional IRAs have a trustee or custodian, required by law, who look out for their own best interests, leaving the account owner with almost no control over investment options.
But with a self-directed Roth IRA at the account owner not only has 100% control over investment options, but can also use the IRA to purchase and invest in real estate.
Traditional IRA methods of investment only payout a ROI of about 4%-9% annually.
While the self-directed Roth IRA, if used in real estate investing, pays out a ROI of 15%-30% or more annually.
And if you use your self-directed Roth IRA for purchasing and investing in real estate and roll the profits right back into the IRA, the profits are tax-free.
You see normally a person pays what's called 'capitol gains' taxes on profits from real estate investing.
Let me explain this in an example, remembering that all figures, time, etc...
are for the sake of an example only.
Example: Say you are just a regular person and you bought a property for $50,000 and later sold it for $70,000.
That would be a $20,000 profit that you would have to pay a 15% capital gains tax on equaling $3,000.
Using the exact same figures, if you used your self-directed Roth IRA to purchase and invest in that property at $50,000 and later sold it for $70,000 and rolled the profits directly back into your self-directed Roth IRA you would pay no capital gains taxes.
It would be 100% tax-free and you would have the full $70,000 to reinvest later.
How great is that! If you want to learn more about the rules of self-directed IRAs you can look up these articles online: 'Different IRAs and Their Investment Options', and 'IRA Investing in Real Estate: The Revolution to Retirement Planning'.
It is obvious to see why, if given the choice, a person should rollover to a self-directed Roth IRA.
Does the concept of 100% autonomy with a self-directed Roth IRA scare you? It shouldn't and I'll tell you why.
And as for the problem of not knowing what to do, or how to do it? There are teams, groups, and companies trained and out there for this very purpose and they are ready to help you.
The only thing you have to do is decide which one is right for you.