Sunday, June 27, 2010

Self Directed Ira's

There are a million posts about self directed IRA's already online. Most people by now already know what a self directed Ira is, but if you don't, here is a simple definition.

A self directed Ira is by definition an Ira account where you can make investments in non-publicly traded investment vehicles. Instead of being limited to stocks, bonds, mutual funds, etc., you can buy real estate, invest in tax liens, private placements, and much more.

So, what can't you invest in?
The IRS defines a prohibited transaction as follows: "Generally a prohibited transaction is any improper use of your IRA account or annuity by you, your beneficiary or any disqualified person. Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendant, and any spouse of lineal descendant)."--Source IRS Publication 590

In other words, you can't make loans to yourself, your family, or buy real estate for personal use.

Why use a self directed IRA?
The number one reason for a self directed Ira is to invest in Real Estate. You can buy rental property, make high yielding loans on real estate to others, (deeds of trust), and of course join the millions of others in America making high returns in the fix and flip market.

How do I choose a self directed IRA company?
Although there are many to choose from in today's crowded market, I still prefer to go with companies that have been doing this the longest and offer the lowest fees. The annual fees and per investment fees can really get you so it is important to do your own research. I've found the following companies to be the best in my experience.

How do I find good investment options for my self directed Ira?
My company offers deeds of trust and we work with a number of successful real estate operators who are looking for partners. Please review our website for more information.

To learn more about self directed Ira's, I suggest going directly to one of the 3 Ira company links I posted above. There you will find lots of explanations and tutorials on self directed Ira's.

To your Wealth!
Russell Roesner
Equity Coalition President
San Francisco, CA 94121


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