Using an inherited IRA for leverage

[Brian Griggs]

New investor, looking for advise on the possibility of using an inherited IRA for leveraging a property. Let me know if you have any experience in this matter.

[Brian Eastman]

@Brian Griggs

An inherited IRA may be setup as a self-directed variety, and therefore provide the option to invest in real estate. The IRA will own the real estate, all expenses are paid from the IRA and the IRA receives all income tax deferred. With an inherited IRA, you need to ensure the cash flow your real estate investment produces will meet your need for taking required distributions.

Real estate can actually be a very good investment for an inherited IRA, as the principal is secured by a less volatile real asset that produces consistent income. We also have a lot of investors using such plans for investing in notes for the same reason.