Learn how to use your IRA to buy real estate in Houston through this short guide brought to you by top leaders in turnkey real estate investments. On a separate article, we wrote about putting local Houston investment properties into your self-directed IRA… if you haven’t checked that out… head over here.
Here, we’ll walk you through some more things to look out for and how to use your IRA to buy real estate in Houston Texas.
So lets dive in!
Putting your money into an IRA or similar investment vehicle can be a great idea.
Everybody knows that.
But with taxes on their way up, it might be an even better idea to create a self-directed IRA, which will allow you to widen your investment options to include local Houston real estate in order to defer your taxes and end up earning a better rate of return in the long run.
If you are considering this option, you might want to determine whether this is a good move for you. If it is, here’s how to use your IRA to buy real estate in Houston.
A Few Quick SDIRA for Real Estate Facts
- In order to use your IRA to buy Houston real estate, that property must be a business, not a personal home, a second home, or a rental (but there is a simple way to put rental properties into a SDIRA… read on to know how)
- The property you buy must not be something you already own
- It must also be a purchase that’s directly into the IRA
How To Use Your IRA To Buy Real Estate In Houston
It is possible to buy rental property with an IRA, but you must open a custodial account then transfer money into it. It’s a simple process that we can help you. Just give us a call at (713) 635-9000 and we can walk you through the process.
There are many rules associated with this type of transaction, so be sure you understand and agree to them before you buy. It is also possible to buy a home for the purpose of “flipping” it, but only if you are in the flipping business.
Furthermore, there is a limit to the number of flipped properties you can purchase in one year in Houston with your self-directed IRA.
SDIRA Investing Limits
The rules that govern these types of investments do not allow a traditional mortgage with an IRA.
Instead, you need to have enough money in your IRA to make the purchase. There are costs associated with administering the IRA, so you must make sure that your IRA has enough money in it to cover those expenses too.
Again, if you don’t already have a great self-directed IRA custodian… reach out to us and we can connect you with the ones we know of who are very real estate friendly. Just give us a call at (713) 635-9000 or shoot us an email through our Contact form and say “I’m looking for SDIRA resources for buying Houston investment properties”… and we’ll get back to you right away.
Basic Rules Of Investing (Even With Real Estate)
There are many rules in investing that can help you determine a good purchase from a bad one. One of the most important is to diversify your portfolio.
As tempting as a real estate purchase might be in Houston, it’s a good idea to follow this advice when using your IRA to make a purchase. Just as is the case with any big investment, it’s always a good idea to check with a qualified financial adviser before you make a purchase to get an independent view of the long term as well as the short term outlook.
In the end, using your IRA to get Houston investment properties can be a great route. It helps you grow your portfolio using real estate with the tax benefits of the IRA.
If you’re looking for investment properties here in Houston join our Fast Cash Offers Preferred Property Buyers List through the link below.