Self Directed IRA For Real Estate – Rules for Saavy Boston Investors?

Investors we work with here at Bowlmouse Real Estate Company…

ask us questions all the time about buying investment properties in Boston MA… and the main topic of conversation is how are you going to pay for it?

So you may be wondering… can I use my IRA to buy local investment properties?

Self Directed IRAs for Real Estate…

IRA’s, or individual retirement accounts, traditionally hold investments like stocks, bonds, mutual funds, etc…. because that’s the most common way people save for their retirement.

But, you know that real estate can be a GREAT option for increasing your wealth.

So, can you use your IRA to grow your retirement fund, earn the tax benefits of the IRA, and the benefits of Boston real estate too?

You can, but you should do certain things to ensure that the law is being followed to the letter when using your IRA for local Boston real estate investments.

Some Simple SDIRA (Self Directed IRA) for Real Estate Rules To Follow

No “Self Dealing”

If you’re using your self-directed IRA for real estate in Boston you are forbidden from self-dealing.

Self-dealing is outlawed with your SD IRA in the sense that it can’t purchase land or property (both commercial and residential) for the owner or any family member to reside in.

It is also prohibited from selling property or land to the owner of the IRA or family members in the process of business dealings in Boston.

The Process of Buying Boston with Your Self Directed IRA

There are very specific rules that you have to follow if you’re using your SD IRA to pick up Boston MA properties.

Once you provide the correct documentation for purchasing the local Boston investment property to the self-directed IRA custodian, the custodian will start the purchasing process on behalf of the self-directed IRA real estate.

All the costs related to the purchase of the property are channeled through the self-directed IRA for real estate; hence it’s vital that it must have enough cash to pay for all these costs.

Failure to follow these rules this will lead to the forfeiture of tax benefits and will lead to penalties to be paid by the IRA.

Choose The Type Of Self Directed IRA Wisely To Use It For Your Real Estate Investments

There are lots of options when it comes to self-directed IRA’s.

Not all SD IRA’s allow you to buy real estate in them… so you’ll have to do your research to find the best SD IRA custodians so you can start buying Boston properties in it.

Checkbook Control

Some Self Directed IRAs have more restrictions than others.

As an example… some of them require that you submit the investment details to them… they analyze it… then they send the cash from the account.

But there are accounts that give you whats called “check book control”.

An investor in self-directed IRA for real estate with control of the checkbook is able to make purchases by just writing checks rather than having to go through the custodian first. This lets you take advantage of deals that you need to act quickly on.

Your Role In The Investment After The SD IRA Purchases It

You as the owner of the self directed IRA account have the ability to really manage the investment in a hands on manner. The roles include: receiving checks for rent payments from tenants, managing the properties, etc… everything you’d normally do as the owner of an investment property.

There are more guidelines that you have to follow if you plan on using your self directed IRA for real estate in Boston… so make sure you do your homework and do these two things immediately:

  1. Find a great self directed IRA company / custodian: You have to get this in place before you even think about purchasing anything through your IRA. If your current IRA holder won’t allow you to buy and hold real estate in it… call us at 781-269-2629 and we’ll refer you to the best local custodians… and they’ll be able to help you transfer your current IRA to your new self directed IRA.
  2. Find a couple great Boston investment property experts, like us at Bowlmouse Real Estate Company.  One of the best ways to get great properties here in Boston MA is by working with a professional investment property company like ours. We find discounted properties (both single family and multi-family) all around Boston and sell them to investors like you at discounts so you can turn them into solid profitable rental properties.  Join our Preferred Buyers List Here >>

We Can Help You Get the Ball Rolling With Your SD IRA For Real Estate.

Just reach out to us at the phone number below or send us an email… and we’ll walk you through the process, point you to the best SD IRA resources locally in Boston, and get you on our Preferred Investment Property buyers list.

Call Us For More Info On Buying Boston MA
Real Estate In Your IRA at 781-269-2629

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