The world offers many investing options. These investments range from conservative to risky. All individuals want to invest in something that will give them a return not a loss.
This is why many people are having a hard time investing with the current economy. Having the stock market and bonds plummet in their value makes individuals nervous. There are investments that are more successful in inflation than others.
Two of these options are precious metals and real estate. When inflation hit, the real estate market’s value dropped dramatically. This was bad for homeowners who wanted to sell, but now it is the perfect buyers market.
Individuals can even invest in real estate through their self directed IRA. This way the profits or rent that they receive through their real estate investment is saved for retirement. There are different types of real estate that can be bought with this IRA.
One type of property that can be invested into is an apartment complex. Individuals can renovate the complex and rent it or turn and sell it for a profit. It is important that all individuals know that the money from the apartment go straight into the self directed IRA.
Any money that is used for a personal benefit will disqualify the real estate investment from the IRA. The money can be used to fix up the property, but not for personal use. It can even be used to buy more real estate properties.
The self directed IRA has many regulations. One regulation for real estate investing is that the owner and his or her family cannot live in or on the property. If this does happen, then the investment is disqualified.
If there are any questions, investors can go to their custodians for clarification. One of the most important things is that the custodian be involved in purchasing the property from the beginning. The property will not count as an investment in the self directed IRA if the custodian is not involved.
NAFEP (The National Association of Financial and Estate Planning) is a leading provider of self directed IRA and self directed 401k products, administrative and custodial services.