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Posted over 12 years ago

Investing in Real Estate Through a Solo 401k or Checkbook IRA

Have you ever considered real estate for your retirement account? Investing in real property may be one of the best ways to secure your financial future. Prices are still very depressed around the country and there are some great deals that you can take advantage of on all types of income producing properties.

To take advantage of many properties that are selling for less than the cost of construction – sometimes as much as 50 percent less, it helps to have plenty of cash. While most people don’t have enough savings to take advantage of the opportunities in today’s real estate market, they may have sufficient funds in their IRA, 401k or other retirement account.  People who’s retirement accounts have been losing value in the stock market can capitalize on real estate opportunities by converting their account into self-directed retirement accounts. We take care of all the details, setting up your account and getting you started on a better way to save for retirement.

A Solo 401k (for qualified self-employed individuals) or Checkbook IRA from Sense Financial are completely self-directed and allow you to invest your retirement funds how you want, when you want and into virtually any investment including real estate. You stay in full control of your retirement account.

Investing in real estate using a Checkbook IRA or Solo 401k is, in my opinion, less risky compared to the very unpredictable stock market. With an investment in rental property you have much better control of how it is managed and you are buying at rock bottom prices.

All of the cash flow generated by properties inside your Solo 401k or Checkbook IRA goes right into your retirement account, compounds, and grows over time, tax deferred. The stream of revenue and earnings is steady. In time you will build up equity and your property has a high chance for appreciation as the weak market conditions improve.

Now is the time to think seriously about investing in real estate through a Solo 401k or Checkbook IRA. It is a buyer’s market. Banks are accepting short sales and want to get rid of foreclosed properties on their books. You can get a great return on your money with very limited risk.

Self-Directed Investing recently appeared on CNBC news, view here:

http://www.youtube.com/watch?v=IaaUYTAs4aQ&feature=plcp


Comments (4)

  1. Abby, feel free to give me a call at 949-228-9393 and I'll be happy to give you some feedback.


  2. I am considering starting a Solo 401 K account with the IRA Financial Group. I have been looking for consumer reviews about this company and have not found anything. They seem to be a well known company but I would feel better to hear from active or past clients. Would appreciate your advice or help with this. Thanks! Abby.


  3. Yes, you should secure the loan by underlying real estate by creating a deed of trust. You should go through an escrow or title company company to get everything properly set up. If you would like to send me an email I can refer you to someone who is in a private loan business that could help you further.


  4. I am contemplating to make a loan to a friend, to purchase income property, using solo 401k funds. Do you have a word of wisdom on what proper way to make this transaction. Do I need to put 401k on trust deed? Thanks for the feedback. Leonid