Carol and David Bryant are a husband and wife team with almost 30 years of combined experience in the vacation rental and property market. They are owners of Eden Crest Properties, LLC, based in the Pigeon Forge and Gatlinburg areas of eastern Tennessee. Here, they discuss how investing your self-directed IRA in real estate makes strong financial sense.
Many people are unaware of the fact that they can invest their IRA in real estate. This is called a self-directed IRA, and everyone that currently has an IRA has the potential to take control of their investments, and the return on their investments, by using those dollars to purchase investment real estate.
With a self-directed IRA, you are in charge of your investments, and have more investment options than with traditional retirement accounts. You don’t even need to speak to a financial adviser. There are companies that handle the administration of the IRA, and they also take care of all the IRS requirements for you.
Strong Return on Investment
Having a self-directed IRA is a good idea. Few people know that that it is even doable. In comparison to the market turning one to one and a half percent on the dollar, we can turn as high as 20% on the dollar, depending on the investment.
Now we don’t want to mislead people, so please keep in mind that the above is the best-case scenario. The average scenario is 8% to 12%, which is still strong, as you can see.
Be in Control
With a self-directed IRA, you are also in charge of your investments, and have more investment options than with traditional retirement accounts. You can also:
- Use your IRA or 401k to purchase investment property.
- Have more control over your retirement investments.
- Your IRA can earn money for you tax-deferred or tax-free.
Our job as brokers is to help potential buyers locate the property for the best return on their investment. Through our agency, we can also refer them to a company that will handle the administration side of the self-directed IRA.
