Tips on Buying Real Estate with your IRA in Stonecrest GA – Resideum Buys Houses in Metro Atlanta

We buy properties in Stonecrest GA

While most people understand that real estate is an investment, many people are taking advantage of the qualified retirement accounts to purchase real estate as an appreciating or revenue-generating instrument like IRAs.

It’s really important to understand the tax implications, legal ramifications, and various other intricacies of purchasing Stonecrest real estate within your IRA. We are local homebuyers in Georgia and we buy houses in Stonecrest Georgia. Let’s dive into some tips on buying real estate with your IRA in Stonecrest GA!

Tips on Buying Real Estate With Your IRA in Stonecrest

If you don’t have a self-directed type IRA… first off… you’ll need to connect with your trusted financial advisor to find a reputable and low fee self-directed IRA. Or, connect with us and we can direct you to some very good self-directed IRA companies we’ve worked within the past.

Open a Self-Directed IRA

Sell your house in Stonecrest GA

The first step for purchasing investment properties in Stonecrest within your IRA is to open a “self-directed” IRA. You can do this by visiting a qualified financial advisor or other trusted fiduciary to act as the IRA custodian. A fee-only financial advisor can help you set up this account with minimal hassle, while a commission-based financial advisor may attempt to steer you clear of purchasing tangible assets within your IRA (he or she won’t earn much on the investment).

Types of Properties You Can Buy With Your IRA and Rules

Cash for properties in Stonecrest GA

You can own a wide variety of properties within your IRA, including residential, commercial, and industrial structures, as well as unused land. Many savvy investors choose to purchase parking lots, storage unit facilities, and other types of property that require little maintenance but generate steady income.

Your IRA cannot own any home where you live or vacation. Legally, you aren’t even allowed to spend one night on the property. You cannot avoid this restriction by “renting” the property from your IRA, or renting to your spouse, children, grandchildren, parents, or grandparents, nor can you use an IRA to purchase a property from a close family. You could, however, rent property to a sibling, cousin, or friend. A solution that many investors implement is to purchase a home for their IRA, rent it out for income until retirement, then assume residence upon retirement.

How Does Income Work With Real Estate In An IRA?

The income generated in your IRA may not be used for your “personal current benefit.” This means that all income generated by the property must remain within the IRA until you retire. Selling the property will require you to leave all profits within your IRA. Also, property taxes, insurance, improvements, and other costs associated with the property must be paid by the IRA. Failure to comply with these regulations could disqualify your IRA, subjecting you to income taxes on the entire value of the property, plus a 10% early distribution penalty.

It’s important the all distribution rules associated with an IRA (or Roth IRA) including taxation, required minimum distributions, beneficiaries, and other factors do not change when using a self-directed IRA to purchase a property. There can be a huge upside to real estate in your IRA, but it’s best to know exactly what’s in store.

Sell My House In Stonecrest GA

We are Georgia home buyers and we offer cash for houses in Stonecrest in any situation. If you have any questions whatsoever about how to sell your house in Stonecrest and the surrounding areas, don’t hesitate to reach out to our team! We will make the process simple so you can quickly sell your house in GA and move on!

Learn About Our Properties In Stonecrest Call Us (678) 710-6130
or join our Investment Property Buyers List Today! >>

Greg Kurzner, is CEO of Resideum, Atlanta’s Professional Homebuyer company. Greg has been a force in Atlanta real estate for over 30 years. He has been involved in the sale of over 1 Billion in real estate transactions in his career and consistently ranks #1 in sales by units by Atlanta Realtor Association. In addition to Greg being a licensed real estate broker, he is also a licensed general contractor and a nationally-recognized expert in investment real estate.

Get More Info On Options To Sell Your Home...

Selling your house these days can be confusing and challenging. Connect with us or give us your info below and we'll help guide you through your options.

What Do You Have To Lose? Get Started Now...

We buy houses in ANY CONDITION in Atlanta. Sell my house fast in Atlanta! No commissions or fees and no obligation whatsoever. Start below by giving us a bit of information about your property or call (678) 710-6130...
  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *