Four Reasons Real Estate IRAs Might Be Right For You

Posted on July 11, 2016 by

When you think about the acronym “IRA,” what do you think about? For most people, it’s a very common recipe: an IRA is something in which you put your mutual funds, your bonds, your stocks…and very little else. It’s the beaten path to retirement, and it works for a lot of people. But others wonder if there aren’t ways to supplement this type of investment and ensure a consistent level of income for your retirement years. These are the kinds of people who start to research Real Estate IRAs.

If that sounds too complicated for you, just remember: the IRS allows for lots of different types of investments through retirement accounts. A Real Estate IRA is simply a Self-Directed IRA in which you place a real estate investment. And considering just how common of an investment real estate is—especially for America’s seniors who want to ensure that they have consistent income for the future—then maybe it’s time that you consider real estate IRAs too.

Not convinced yet? Let’s take a look at some of the most common reasons people consider these IRAs:

Reason #1: Real Estate IRAs offer short-term cash flow.

Yes, the stock market is a great investment, if you do it right. Over time, you can expect to see consistent returns…as long as you have the time to ride out the difficult years. But what if retirement is coming up sooner rather than later? What if you need to ensure yourself a consistent level of income in the next few years, and you don’t believe that you can achieve that in the stock market? Then you might consider turning to real estate and having the consistency of rent checks.

Reason #2: Real estate can be lower-maintenance than you think.

Talk about a real estate investment and some people just hear one key phrase: ‘become a landlord.’ But the reality of the situation is that real estate through an IRA will require that you work through a property manager. You don’t have to do much except oversee the operation, watch your IRA grow, and ensure that all taxes are taken care of—and, let’s face it, you always have to ensure taxes are taken care of. Real estate doesn’t have to be a part-time job if you don’t want it to be.

Reason #3: Diversification.

Stocks are down, your account is down. Stocks are up, your account is up. Isn’t it kind of strange that people should rely so heavily on one specific type of investment for their retirement future? We think so, too, which is why real estate and other Self-Directed IRA investments can help loosen the stock market’s grip on your accounts.

Reason #4: Real estate is consistent.

Sure, real estate has its ups and downs like any other market—and you shouldn’t trust anyone who tells you that there’s no risk in real estate investment. But real estate does retain its value to a great deal, unlike other types of “investments” that people like to seek out. Real estate can be especially consistent if you have a strong property manager and enough tenants to keep the rent checks flowing in a positive direction.

If these reasons sound like, well, “reason enough” for you to consider Real Estate IRAs, then have a look around to learn more about what these Self-Directed IRAs can do for your future if you manage them well. And if that’s not enough, you can always get in touch with us at 1-866-7500-IRA(472) to find out more about Self-Directed IRAs.

Jim HittJim Hitt is the Chief Executive Officer of American IRA and he has been committed to all aspects of investing for more than 30 years, using self-directed IRAs for his own investments since 1982. Jim’s forte is the financing and acquisition of real estate, private offerings, mortgage lending, business’s, joint ventures, partnerships and limited liability companies using creative techniques.

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