What to do with Retirement Dollars
Personal retirement funds, like those held in self-directed IRAs, are an often overlooked source of capital because most investors (and real estate pros) do not know it’s possible to invest IRA funds beyond stocks, bonds and mutual funds. But self-directed IRAs give account owners control over choosing their investments and they can use IRA funds to participate in almost any form of real estate investment -- from condominiums and office complexes to REITs or tax liens. Using an IRA to invest in real estate provides the added benefit of investing with tax-advantaged dollars. When a real estate investor uses retirement dollars, in most, if not all cases, capital gains are avoided and taxes on income from return on investment are deferred until it's time to take distributions. There are also certain regulations that you need to be aware of when it comes to investing in real estate with a self-directed IRA. One example is that self-directed IRAs are prohibited fro...