Patricia McCrystal
October 7, 2015
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!
