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Rental Basics in Sun Bay South : Real Estate Advice

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Sun Jun 9, 2013
Lynn Brock answered:
Trever89, if you are paying cash No limit.

If you'd like to use your IRA money The real estate you buy must be a business property, not a personal residence, second home or occasional rental. Also, you can’t use your IRA to buy a property you already own; it has to be a new purchase directly into the IRA.

If you wanted to buy a rental property, Very specific rules outline what you can and cannot do in funding and managing the investment, so make sure to get good advice on those rules.

You can also buy and sell real estate in a self-directed IRA if you are in the flipping business, but there are limits on how many you can do per year. The profits on any transaction would be tax-deferred or tax-free and allow your IRA to continue to grow with those tax advantages.

Financing you can seek hard money, private money and conventional with hefty downpayments.

Cash acquisitions are the least complicated.

Best regards,
Lynn Brock
Brock Realty Inc.
941.313.1234
www.brockrealty-inc.com

The real estate you buy must be a business property, not a personal residence, second home or occasional rental. Also, you can’t use your IRA to buy a property you already own; it has to be a new purchase directly into the IRA.

If you wanted to buy a rental property, you would open an IRA custodial account, transfer cash from an existing IRA account — or possibly 401(k) — into the custodial account and then purchase real estate under the IRA account name. Very specific rules outline what you can and cannot do in funding and managing the investment, so make sure to get good advice on those rules.

You can also buy and sell real estate in a self-directed IRA if you are in the flipping business, but there are limits on how many you can do per year. The profits on any transaction would be tax-deferred or tax-free and allow your IRA to continue to grow with those tax advantages.
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