IRA

[Frank Yaccarino]

Can someone tell me if and how I can use my IRA to buy real estate?

[Brian Eastman]

@Frank Yaccarino

An IRA may be used to invest in real estate. The IRA is the investor, not you. All expenses come from the IRA and all income is returned to the IRA. You may not use the property personally or compensate yourself for managing the IRA's investment.

It is pretty much like the IRA you have today, but with the ability to diversify into hard assets such as real property.

There are several different plan formats and the type that will best suit you will depend on your situation and goals.

There is a lot of good content on this topic here on BP, and several participants in the forums that offer self directed IRA services. Do some reading and then speak with a few of the providers to get a feel for what will work best for you.

There are specific tax considerations and rules, so be sure to consult with your licensed tax professional once you have a strategy in place, but before you actually embark on that strategy.