Real estate is the number one asset in self-directed retirement plans. Realtors who understand how individuals can use these plans to invest become greater assets to clients and potential clients.
Investment real estate has always been considered a fairly safe haven compared with stock market assets. Whether or not this holds true depends on the viability of the property purchased and the initial cost, as well as in the potential of how the property is used for investment purposes.
A successful investment might be a commercial building in a prime location, which is acquired at a good deal and sold for a larger profit. Rentals (both commercial and residential) in desirable areas may also garner steady income, as may the perfect rehab-and-flip scenario. While no investment is a sure-fire guarantee, you can somewhat safely bet that the value of your investment property probably won’t drop like a hot rock within an hour like assets on the stock market can (and do!).
Today’s economic climate, combined with the retirement crisis and the tumultuous state of the stock market, is causing many individuals to seek more diversity in their retirement plans. This is exactly where the self-directed IRA comes into play.
What is a Self-Directed IRA?
Self-directed IRAs and other plans give account owners total control over their retirement funds and investing decisions. Many diverse alternative assets are permissible in these plans—investments beyond typical and unpredictable Wall Street offerings. In the real estate realm, investors can choose commercial or residential property, rentals, rehabs, improved or unimproved land, foreign land, tax liens and deeds, and even private mortgages. This is why learning about how real estate in an IRA works is important for realtors.
Obviously, investors require the services of real estate professionals to help to find property. Realtors who know and understand the way retirement plans can buy and hold (and sell) property to grow income become powerful resources for existing and potential clients. This knowledge has great potential to lead to more sales, which means more commissions.
Who is Advanta IRA?
Advanta IRA specializes in the administration of self-directed retirement plans across the nation. Currently, our clients hold over $700 million in self-directed assets, and that number is climbing. Part of our mission is to educate our clients, investors, and others whose industries overlap ours on how to use self-directed IRAs to invest in alternative assets.
In furthering this mission, our focus for realtors is that we offer specific webinars designed to teach the fundamentals of self-directed plans and investments in real estate. These online events allow participants to gain three hours of continuing education in their field. Attendees learn about the basic types of retirement plans, with a special emphasis on accounts that can benefit the real estate professional in particular. We also cover: prohibited transactions rules, types of investments that can be made with an IRA, and present numerous case studies to show how the process of buying real estate within an IRA works. These courses are complimentary—no fee is charged for realtors to attend to earn these credits.
For more information about this article or to learn more about real estate in an IRA, please contact us.