I live in the Kansas City Metro area and can’t find anyone who will help me with a Self-Directed IRA that I can use to invest in Real Estate. I want to buy properties for rehabbing with these funds and put the profits back into the IRA. Just bought our first property and don’t want to have to go through this approval nonsense every time when I’ve got funds sitting there wanting something to do. Can anyone put me on to someone reputable.
Doesn’t necessarily have to be in the KC area.
Thanks
Thanks, I appreciate the info.
pete
can you please offer more info on the real estate ira?
i went to the equity trust site, but i have a stupid question…
is it the profits from a real estate sale or the actual property that goes into the account?
the concept is really interesting but i’m not getting how it works. how much can you contribute?
thanks!
dumb blondie ???
This is basically how a self directed IRA works. You contribute certain amount of money to your IRA account (they just raised the amounts, so I’m not sure what the maximum contribution is…used to be $2,000 per year) or you can convert an existing IRA account into a self directed IRA account.
The contributions are then used to buy real estate, options, tax liens, loan money to others, etc.
Then any gains or profits are tax free or tax deferred (depending on if it is a Roth or not).
The important thing to remember is that the IRA owns the money not you. And there are specific laws about how involved you can be in the transaction.
Regards,
Patti Porter
On the question on how much you can contribute is not as clear cut as you would think depending on what account you have, sep, 401k, ira. But to make it easier, lets discuss a roth or traditional IRA. You can put $4000 this year as a contribution, and if you are over 50, you can put $5000 in. If you have an old 401k or IRA, you can roll or transfer that money to a self directed IRA. Now here is the thing, contributions have limits but earning do not. If you have $100,000 and buy a piece of property, and 6 months later sell the property for $200,000, all the profits go back into your IRA. You can have limitless earning on the money that you have. But in that year, depending on your age, can only contribute a certain amount of money to that IRA. So this is what you have to know, earning are limitless contributions per calendar year are not.
I have just joined and I deal often in coordinatingconversion of 401k and IRAs to the Self-Diredted IRA setupsfor use in real estate projects. I think that this question from June addresses the inflexibility of the two or three largest administrator companies in CA. and ILL… There are several Local law firms and such to do this. Permission is much easier with someone smaller who you can call and talk to personally. I cannot suggest or refer in this forum, but after reading this posting I will advertise in that section of this website. At any rate it is much easier than your experience would suggest.