Self-Directed IRAs
How You Can Use IRA Funds for Real Estate Investments
Contact Us for a Free Self-Directed IRA Consultation
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The Equity Advantage and IRA Advantage Story
IRA Advantage is Equity Advantage's sister company, and it was created to empower the investors we have worked with since 1991. Over the years we have fielded questions on IRAs and have received numerous inquiries for help with Self-directed IRA products and their investment in real estate.
As we entered 2008, financing grew tighter and investors watched their retirement savings shrink, and the demand for our service only increased. It was clear that we had to create a solution to our client’s needs. IRA Advantage is the result. We created a service that effectively creates a “conduit” out of the stocks and bonds that a traditionally held into real estate and other alternative investments and to make those investments simply by writing a check. The firm’s mission is simple-to provide Opportunities and Solutions to the people we work with.
The principles of the firm are David and Thomas Moore. The Moore brothers have been pillars of the Investment Real Estate Community since 1991 when they founded Equity Advantage. The brothers are known for their ability to get the difficult deal done, they are often called in as consultants before deals are struck or to clean up deals that are going astray. It is the thorough working knowledge of how to get the deal done that now empowers clients through IRA Advantage.
You’ve worked hard for your money, we’ll make it work hard for you.
IRA Investing Basics
How and Why to Use IRA Funds for Real Estate Investments
Since 1974, investors have had the ability to use IRAs and other qualified retirement accounts to invest in a wide range of alternative assets. But there are few, if any investments that have consistently proven more powerful or dependable than Real Estate!
If you're looking to do more with your IRA, click here to read our beginner's guide to IRA Investments:
Audio Series: IRA Investing In Real Estate
Unlock your IRA’s investment potential. Learn how to invest funds currently in your IRA into real estate in "Real Estate Today's" 10 session series featuring host, Bob Nelson, and David Moore, founder of IRA Advantage and Equity Advantage.
The late Bob Nelson, CCIM, was a real estate investment broker and principal broker with Pacwest Real Estate Investments in Eugene, Oregon. With over 40 years experience in real estate investing, Bob was the number one source for marketing trends and investment strategies in the Willamette Valley and his advice still continues to ring true today:
1031 Exchange and IRA: How It Works
How to Combine a 1031 Exchange and a Self-Directed IRA
Self-Directed IRA funds can be a valuable source of capital for real estate investors, which leads many to ask, can you combine a 1031 Exchange with a Self-Directed IRA account? While you absolutely can combine the two, and they are very often combined, they may not work together in the way that many investors assume.
1031 Exchanges vs Self-Directed IRAs
Want to dive deeper into how 1031 Exchanges and Self-Directed IRAs can work together? Watch the blogcast and read the article to learn how to use these two strategies together, avoid common pitfalls, and understand the special Airbnb and VRBO Rules for 1031 Exchange Properties.
Client Stories
Opportunity 1
A business owner wanted to diversify his retirement account’s holdings by adding real estate. He was interested in using a portion of his 401k account to make the investment.
The investor found a parcel of property near the beach in Mexico that he believed would make a good investment. The investor is confident in the property’s future value and wanted to make the investment.
A new LLC was formed to acquire and own the property. The 401k was modified to allow self-direction and then it acquired shares of the new LLC. The LLC then established a business checking account and the shares of the LLC were purchased by the 401k which funded the checking account.
The LLC then made the investment in the property which is held in trust by a qualifying bank and will hold it until the desired return has been achieved or the property is taken as a distribution in the future.
Opportunity 2
A business owner wanted to diversify his retirement account’s holdings by adding real estate. He was interested in using a portion of his 401k account to make the investment.
The investor found a parcel of property near the beach in Mexico that he believed would make a good investment. The investor is confident in the property’s future value and wanted to make the investment.
A new LLC was formed to acquire and own the property. The 401k was modified to allow self-direction and then it acquired shares of the new LLC. The LLC then established a business checking account and the shares of the LLC were purchased by the 401k which funded the checking account.
The LLC then made the investment in the property which is held in trust by a qualifying bank and will hold it until the desired return has been achieved or the property is taken as a distribution in the future.
Both of these transactions are wonderful examples of the opportunities made available with a self-directed retirement account. If you want to explore the investment opportunities available to you, give us a call today at 800.475.1031.
FAQs About Investing with IRA Retirement Accounts
1. Can retirement funds be used for investments other than stocks and bonds?
Yes. A Self-Directed IRA allows retirement funds to be invested in a wide variety of alternative assets, including real estate. This gives investors more flexibility than a traditionally managed retirement account that focuses primarily on stocks, bonds, and mutual funds.
2. Can you use a Self-Directed IRA to invest in real estate?
Yes. A Self-Directed IRA allows retirement funds to be invested in real estate and other alternative assets instead of being limited to traditional investments like stocks and bonds. IRA Advantage helps investors use their retirement accounts to purchase real estate through a simplified investment structure.
3. Why would someone use a Self-Directed IRA for real estate investing?
Many investors use a Self-Directed IRA to diversify their retirement savings by adding real estate to their portfolios. Real estate has consistently been one of the most dependable investment options available, making it an attractive alternative to traditional retirement account holdings.
4. Can you combine a 1031 Exchange with a Self-Directed IRA?
Yes, a 1031 Exchange and a Self-Directed IRA can be part of an investor's overall real estate strategy. However, they do not work together in the way many investors initially assume. Understanding how each strategy functions is important before incorporating both into an investment plan.
5. How does IRA Advantage help investors purchase real estate with retirement funds?
IRA Advantage helps investors move beyond traditional retirement account investments by providing a structure that allows Self-Directed IRA funds to be invested in real estate and other alternative assets. The goal is to make these investments more straightforward while giving investors greater control over how their retirement funds are used.
Are you interested in learning more about the investment opportunities your IRA can bring you? Call us today:
