The past couple years have really been a struggle for those in real estate; prices have been down, many homes are for sale and not many are being bought, and the number of foreclosures are at an all-time high. When you consider all of this it may seem like investing in real estate, in any way, is a bad idea. The New York Times, however, is reporting a new real estate investment trend that is gaining popularity.
Many business professionals, especially those reaching retirement age or those who are self-employed, have IRAs. It is less risky than investing in stocks and gives the holder more control over what it put into the IRA account. A self-directed IRA gives the holder even more control and allows them to use the funds to invest in things like real-estate. While the IRS doesn’t have specific regulations about using IRA funds to invest in real estate there are stiff penalties if you are benefiting from the IRA funds before it is mature. It is a viable option for many people but one that should be considered carefully under the guidance of a trained financial advisor.
Learn more about real estate investing by following Starlight Investments.