How to Use Your IRA to Buy Real Estate in Fort Myers – Part 2

We wrote a recent article about putting local Fort Myers investment property into your self directed IRA… if you haven’t checked that one out… head over here.

Looking to add to your real estate portfolio here in Fort Myers? Using your IRA may be a great fit. Read this article to see how...
Looking to add to your real estate portfolio here in Fort Myers? Using your IRA may be a great fit. Read this article to see how…
In this article we’ll walk through some more things to look out for and how to use your IRA to buy real estate in Fort Myers FLORIDA.

So lets dive in!

Putting your money into an IRA or similar investment vehicle can be a great idea.

Everybody knows that.

Considering the increasing trend in taxes, an even more advantageous approach might be to establish a self-directed IRA. This allows you to broaden your investment portfolio to include local real estate in Fort Myers, enabling you to defer taxes and potentially achieve a superior rate of return over the long term.

a to determine if it’s a good move for you, and if it is, here’s how to use your IRA to buy real estate in Fort Myers.

A Few Quick SD IRA for Real Estate Facts

  • In order to use your IRA to buy Fort Myers real estate, that property must be a business, not a personal home, a second home, or a rental (but there is a simple way to put rental properties into a SD IRA… below)
  • The property you buy must not be something you already own
  • It must also be a purchase directly into the IRA

How to Use Your IRA to Buy Real Estate in Fort Myers

It is possible to buy rental property with an IRA, but you must open a custodial account then transfer money into it. It’s a simple process that we can help you out with. Just give us a call at (239)360-3176 and we can walk you through the process.

Engaging in this type of transaction comes with various rules, so it’s crucial to thoroughly comprehend and agree to them before making a purchase. Additionally, buying a home with the intention of “flipping” it is a viable option, but it’s typically reserved for individuals actively involved in the flipping business.

Furthermore, there is a limit to the number of flipped properties you can purchase in one year in Fort Myers with your self directed IRA.

Again, the best course of action is to determine the rules for the process to make sure you can live with them.

SD IRA Investing Limits

The rules that govern these types of investments do not allow a traditional mortgage with an IRA.

Instead, you need to have enough money in your IRA to make the purchase. There are costs associated with administering the IRA, so you must make sure that your IRA has enough money in it to cover those expenses too.

Again, if you don’t already have a great self directed IRA custodian… reach out to us and we can connect you with the ones we know of who are very real estate friendly. Just give us a call at (239)360-3176 or shoot us an email through our Contact form and say “I’m looking for SD IRA resources for buying Fort Myers investment properties”… and we’ll get back to you right away.

Basic Rules of Investing (even with real estate)

There are many rules in investing that can help you determine a good purchase from a bad one. One of the most important is to diversify your portfolio.

While a real estate purchase in Fort Myers may be tempting, it’s advisable to heed this advice when using your IRA for such investments. Like any significant investment, consulting with a qualified financial adviser before making a purchase is a prudent step. Seeking an independent view on both the long-term and short-term outlook can provide valuable insights and help ensure informed decision-making.

In the end, using your IRA to invest in local Fort Myers FLORIDA investment properties can be a great route.

It helps you grow your portfolio using real estate with the tax benefits of the IRA.

If you’re looking for investment properties here in Fort Myers join our Core Real Estate Solutions Preferred Property Buyers List through the link below.

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