Recently we wrote an article about putting local San Antonio investment properties into your self directed IRA… if you haven’t checked that one out yet… head over here.
So Lets dive on in!
Putting your money into an IRA or similar investment vehicle can be a great idea.
Everybody understands that.
But with taxes on their way up, it might be an even better idea to create a self directed IRA, which will make it possible for you to expand your investment choices to include local San Antonio investment real estate so as to defer your taxes and end up earning a better rate of return in the long run.
If you’re thinking about doing this, it may be a good idea to determine whether it is a good move for you, and if so, here’s how to use your IRA to buy real estate in San Antonio.
A Few Quick Facts on SD IRA for Real Estate
- In order to use your IRA to purchase San Antonio real estate, that property must be a business, not a personal home, a second home, or a rental (but there’s an easy way to put rental properties into a SD IRA… see below)
- The house you buy must not be something you already own
- It also has to be a purchase directly into the IRA
How to Use Your IRA to Buy Real Estate in San Antonio
It’s possible to buy rental property using an IRA, but you must open a custodial account and then transfer money into it. It’s an easy process that we can assist you with. Just give us a call at phone and we can help you with it.
There are a lot of rules associated with this kind of transaction, so be sure you know and agree to them before you purchase. It’s also possible to purchase a home for the purpose of “flipping” it, but only as long as you’re in the flipping business.
Furthermore, there is a limitation to the number of properties you may buy in a year in San Antonio with your self directed IRA.
Again, the best plan is to determine the rules for the process to be certain that you can live with them.
SD IRA Investing Limits
The rules that govern these kinds of investments don’t permit a traditional mortgage using an IRA.
Instead, you have to have enough money in your IRA to be able to make the purchase. There are costs associated with administering the IRA, and that means you must make sure your IRA has enough money in it to cover those expenses also.
Again, if you do not already have a good self directed IRA custodian… reach out to us and we can connect you with those we know of that are extremely real estate friendly. Just give us a call at (210) 807-6567 or shoot us an email through our Contact form and say “I am searching for SD IRA resources for purchasing San Antonio investment properties“… and we will get back with you right away.
Basic Rules of Investing (even with real estate)
There are a lot of rules in investing which can help you figure out a good purchase from a bad one. Among the most crucial is to diversify your portfolio.
As tempting as a property purchase may be in San Antonio, it is a good idea to follow this advice when using your IRA to make a purchase. Just as is true for any big investment, it is always a good idea to consult with a qualified financial adviser before you make a purchase to get an independent opinion of the long term as well as the short term outlook.
In the end, using your IRA to invest in San Antonio Texas investment properties can be a great way to go.
It helps you grow your portfolio using real estate together with the tax advantages of the IRA.
If you are looking for properties to invest in here in San Antonio join our Lone Star Real Estate Solutions LLC Preferred Property Buyers List through the link below.