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Real Estate/Business Investing from an IRA (Advice)

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Anyone here have any experience investing in real estate using an self directed IRA's? Pros? Cons?
What are the best investment strategies/options for an IRA? I saw a video that mentioned you could purchase realtestate, invest in businesses, etc using a self directed IRA. Any one have any thoughts/experiences in this area?



Also just generally trying to get back into realestate investing I have a good amount liquid 100K+ any advice on smartest way to go about it? Any real estate investors out there?

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again, there are a lot of limitations, such as any profit generated belongs to the IRA. You also need to have an arms-length relationship with the real estate (e.g., you can't buy a vacation home for yourself)

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I have done this sort of thing. 

I would not recommend investing in businesses.  This is much more complex than you realize. I have done this and it is too risky and messy.

As far as real estate goes, this could work very well. You need to research this for months.  You will need to be able to live with ALL of the negatives.

1.  Your custodian has to be fully on board and knowledgeable with managing the investment.

2. hegemony statement about arms length is very correct.

3. Your IRA has to have enough cash to buy the property and pay for expenses.  It is very unlikely that your IRA can get a loan.  If you can get a loan, The income from the property will not be fully tax deferred.  You will have to file a complex tax return.  You will have to pay taxes on a portion of the income until the loan is paid off.

4. Your custodian will have to pay expenses out of your IRA.  You cannot pay out of your pocket for expenses.

5. you cannot sell your property or any existing rental to your IRA.  You cannot live in the property. Any "close" relative cannot live in the property.

6. You will have to get an annual appraisal on the property. The total value of the investment is reported to the IRS.  This is an IRS rule.

7. You will have to develop significant cash reserves in the IRA.  Can your IRA write a check for a new roof when it will be needed?

8.It will be questionable that you will be able to manage the property. It may not be arms length enough.


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