So, you’re intrigued by real estate but you’re not sure how to blend it with your retirement goals?
Allow me to introduce you to a secret weapon: Self-Directed IRAs
These are not for the stock market enthusiasts among us…
Real estate + SDIRAs can be a powerful tool towards your retirement. Let’s dive in…
What is a Self-Directed IRA?
A Self-Directed Individual Retirement Account (IRA) is at its core a traditional or Roth IRA. But, what sets it apart is its flexibility…
Instead of being restricted to mutual funds, stocks, or bonds, a Self-Directed IRA allows you to invest in alternative assets. Think real estate, private companies, or even car washes.
Here’s the golden nugget: Real estate, whether commercial or residential, can be a part of this mix.
Why Real Estate Through an IRA?
So why should you invest in real estate using a self-directed IRA?
1. Diversification
Placing your eggs in different baskets has always been a wise investment adage. Real estate offers tangible value, distinct from the volatility often associated with traditional markets.
2. Cash Flow
Commercial real estate assets bring in steady rental income. Car washes can too. All these can help supplement the yields expected from traditional IRA investments.
3. Equity Appreciation
Over time, real estate tends to appreciate. This growth can be a game-changer for your IRA’s value.
4. The Tax Advantages
It’s not about the returns; it’s about what you keep.
Investing in real estate via a Self-Directed IRA means profits, whether through rental income or sale, flow back into the IRA.
There are UBIT taxes involved (Unrelated Business Income Tax), but the advantages are still there.
Making it Happen: The Process
So how do you begin the process of investing through a SDIRA?
1. Establish a Self-Directed IRA through an appropriate custodian. Choose one familiar with real estate investments.
2. Transfer Funds: Roll over funds from an existing IRA or 401(k).
3. Choose Your Investment: Whether it’s a debt fund, a multifamily complex, or the neighborhood car wash.
4. Direct the Custodian: Once you identify the opportunity, instruct your custodian to buy on behalf of your IRA.
5. Manage the Asset: Rents, dividends, or other incomes flow back into the IRA.
Things You Need To Know
Not a DIY Project: You must work with a qualified custodian.
No Mingling: Keep IRA funds separate from personal finances.
Stay Informed: Rules change. What’s permissible today may be taboo tomorrow. Stay updated.
Why Headway Capital?
In the realm of real estate, you need trusted partners. Here’s where we shine…
✅ Expertise: We’re specialists in commercial real estate, including multifamily & car washes.
✅ Track Record: Our testimonials speak for themselves.
✅ Education: We’re about building long term relationships. We help investors get educated along their journey to make more confident investment decisions.
Next Steps
The journey of wealth creation is filled with opportunities. It’s about the right choices, timely decisions, and aligning with the best.
If you’re a busy professional seeking to leverage real estate without the day-to-day hassles, we’re here for you.
Reach out and connect with us if you’re looking for a SDIRA custodian, we’d be happy to make some introductions.
When you’re ready, there are 2 ways we can help you:
1. Interested in partnering with us as a passive investor? Schedule a call with us here. We’d like to learn more about your unique investment goals.
2. Ready to apply to invest? Fill out our application here. We’ll be in touch shortly after to see if we’re a good fit for you.
** Please note, investments are for accredited investors only at this time. **
