Self Directed IRAs give the ability to invest in alternative investments. One of the most popular investments into a self directed IRA is real estate. If you happen to be interested in moving your IRA into a self directed IRA to purchase real estate we are here to help. If you currently have a self directed IRA set up and are wondering how to invest in real esate or which types of real estate are allowed this article describes a few of the real estate options available.
Single-Family Home
The most common residential property is a single-family home. A single-family home or dwelling is typically occupied by one family , and consists of just dwelling unit. They happen to also be one of the most common types of real estate that are found in self directed IRAs.
Multi-Family Units
Multi-family units are another popular option for real estate IRAs. The multi-family unit can bring in regular rental income. A mult-family unit is a housing where multiple seperate housing units for residential inhabitants that are held within on building. A few of the types of multi-family units are: duplex, townhouse, apartment building or a two-flat.
Commercial Property
Commercial property can consist of many different things. It can be as simple as a restaurant or store to a basketball court. If you are looking for some longer term income a commercial poperty is another option.
Undeveloped Land
This is a great option for many as it gives you the option to do whatever you want. Since the land isn’t developed you can build as you wish. Typically undeveloped land will not generate income right away, but still does have the ability to bring in a profit. Profit may come as you sell the land or develope it.
More Options Available
These are not the only options available. You can invest in many other options and a few of the other options available are tax liens and mortgage notes. When dealing with your real estate IRA or any self directed IRA it is important to make sure you are following all the correct laws. If you need more specific information as to what is taxable make sure you talk to a tax accountant. If you are looking for more information in regards to self directed IRAs contact us at any time.
Author: Nick Barker