Self-Directed IRA For Real Estate?
Dave has some stipulations if Rick wants to use self-directed IRAs to buy and sell real estate.
QUESTION: Rick wants to know what Dave thinks of self-directed IRAs, especially in regard to real estate.
ANSWER: This sounds like fun! Buying and selling real estate within a self-directed IRA means that all the gains made are tax-deferred as the money is growing. It also allows you to use cash and avoid debt to invest in real estate.
Do not use debt to do this because that could cause you to lose your investments.
You also should not do this unless you have a lot of experience in real estate. Do at least 30-40 real estate deals before doing self-directed IRA real estate investing.
Remember: this money is not liquid either – you can’t live off of it.
Otherwise, you should go for it. It’s a fun way to do real estate!