When you add the idea of investing through an IRA to it, people think that their lives will be one big chore of paperwork. But the truth is, if you use the right tools and the right third-party administrator, the entire investing process is much simpler than some would have you believe.
Atlanta, GA (PRWEB)
September 16, 2017
Though believing that real estate investing is one of the most powerful tools to build wealth, the CEO of American IRA, Jim Hitt, recently took to the American IRA blog to clear up some “do’s” and “don’ts” when it comes to real estate IRA investing and how to use it to build up a significant retirement nest egg.
On the list of “do’s”: opening an account with a third-party administrator or custodian firm and moving funds into that account before making any purchase. Because you have to fund a purchase like this through the real estate IRA itself—and not simply transfer real estate to your IRA—this is an integral and necessary first step.
On the list of “don’ts”: living or even staying in your real estate property. Not only is this prohibited, but the IRS could force you to take the full value of your property as a distribution, which will hit you with plenty of taxes and fees to account for. That represents a tremendous loss of wealth for one mistake. Jim Hitt made sure to stress that living in a property held in an IRA is strictly forbidden, which is why one should view potential IRA real estate investments as outside assets, not a way to secure a nice place to live.
Once you know these simple tips, Jim Hitt argues, the process for Real Estate IRA investing becomes much clearer. “I think most people have this view of real estate investing as complicated. And…