Whether you’re a seasoned wholesale real estate investor or are simply interested in trying your hand in the market, using your IRA account to fund wholesale real estate investments has more than a few advantages. Real estate IRA wholesaling takes the pressure off your personal checkbook, and provides an alternative funding source for your investments – one that offers tax-deferred or tax-exempt growth on your investments until distribution.
The role of a real estate wholesaler is to put property under contract, and then assign or resell the property to another investor for a profit. Wholesalers put properties under contract with a contingency in place, and then work to quickly flip the property for a higher return. Investors pay wholesalers with cash, lines of credit, or hard money loans. If a real estate wholesaler isn’t able to resell the property before the date of closing, they can utilize said contingency to walk from the contract.
Real estate wholesaling is touted as being the simplest and least expensive way to invest in real estate, largely for the fact that very little money is needed for the wholesaler to put a property under contract. An additional bonus is not having to repair the property before selling it to another investor – in other words no fixing-and-flipping, just flipping!
Real estate IRA wholesaling looks similar to the typical real estate wholesaling process; the only real difference is that the investor can use his or her IRA or qualified retirement plan to fund the entire investment, or they can partner their IRA account with another IRA or qualified entity to make the purchase (beware ofdisqualified persons rules). Click here to learn more about the different types of IRA accounts.
In order to invest your IRA in real estate, you’ll need to hold an account with an administrator that allows you to invest your account funds in alternative assets (such as real estate, land, precious metals, private equity, private lending, and more). Once you’ve found a self-directed IRA administrator such as New Direction IRA, you can begin the journey of real estate IRA wholesaling. Call New Direction IRA toll free today at 877-742-1270 to start your new adventure as in real estate IRA wholesaling, and as always, happy investing!