For general illustration and/or informational purposes only. Not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice. Past performance is no guarantee of future results. Diversification does not ensure against loss.
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Using Your IRA as an Instrument
to Invest in Real Estate
“A Self Directed IRA enables you to purchase
Real Estate Investments and much more
on a tax-deferred or tax-free basis”
With a Self-Directed IRA LLC you will have the ability to take advantage of the tremendous opportunities in the depressed real estate market today and to invest in almost any type of Non-Traditional Alternative Real Estate Investment, including Residential or Commercial Real Estate, Foreclosure Property, Private Real Estate Business Entities & Private Placements, Tax Liens, First Trust Deeds, Mortgage Investment Pools, Community Real Estate Impact Investments and more!
Use a Self Directed Real Estate IRA to Purchase Real Estate Investments With Your 401(k) Rollover or IRA Transfer
Structuring a Self Directed IRA with American Community Financial enables you to purchase real estate investments and much more on a tax-deferred or tax-free basis.
Rollover your 401(k) or transfer multiple IRAs and combine the funds to:
• Buy and sell real estate and rental properties in the U.S. as IRA investments. • Take advantage of market opportunities by purchasing distressed properties in a Real Estate IRA. • Providing secured returns through many types of First Trust Deeds and Mortgage Funding vehicles.
The ability to invest in real estate using retirement funds has been around for decades. However, it's only become more popular in recent years because of the stock market volatility, increased awareness by companies such as American Community Financial, which specialize in structuring and offering Self Directed IRAs strategies that allow real estate and other alternative investments.
Types of Real Estate Investments
Your IRA Can Hold
A wide range of real estate can be held in a Self Directed IRA, as long as it is investment property and the transaction is properly handled. American Community Financial and our Partners have the knowledge, experience and expertise to assist with your Self Directed Real Estate IRA investments, as well as structuring the following real estate asset transactions on your behalf:
Real Estate Property
• Apartment Buildings
• Multi-Family Units
• Office Buildings
• Raw land
• Improved Land
• Foreclosure Property
• Vacation Property
Real Estate Secured Financing
• Mortgage Pools
• Bridge Loans
• Short Term Mezzanine Financing
• First Trust Deeds
• Tax Lien Certificates
Real Estate Business Entities
• Private Real Estate Investment Businesses
• Private Limited Liability Companies (LLC’s)
• Limited Partnerships
• Private Placements
Options For Investing With
Your Self Directed Ira
Real estate may be purchased and held in a Self Directed Real Estate IRA in a variety of ways:
• Direct ownership by the IRA, • Tenants in common with other unrelated third parties in LLC/LP’s, where each investor holds an undivided
interest in the property, or
• By leveraging the investment with a nonrecourse loan. To learn more about how you can acquire funding
with a nonrecourse loan.
Real Estate Investing Strategies
• Because IRA-owned property cannot be depreciated, purchasing raw land with an IRA rather than improved
property may be something to consider.
• Your IRA could purchase raw land, subdivide and then sell. • Your IRA could buy or invest in Companies (LLC/LP’s) that flip properties (short term) avoiding capital gains
• Your IRA could buy triple net lease properties (low maintenance, no depreciation) long term. • Your IRA could buy real estate options and sell them – the benefits of leveraging, without the risk of
Unrelated Business Taxable Income (UBTI).
• Buy land contracts and sell them to get the benefits of leveraging, without UBTI. • Your IRA can purchase rental property and have the rental income flow back to the IRA on a tax-deferred
basis (or tax-free if it’s a Roth IRA and the minimum holding period requirement is met).
Investing self directed IRA funds in real estate can be very tempting, but it’s important to understand how it works before you invest. We recommend that you consult with an American Community Financial Advisor, who will also be glad to strategize with your tax, financial and legal advisors before deciding to invest in real estate using a Self Directed Real Estate IRA.
To learn more about Products, Services, and Programs that we provide, please contact an American Community Financial Advisor for a No Obligation, Educational Consultation.