Does Buying Property Within Your IRA Make Sense?

Did you know you can invest your IRA or 401K funds in just about anything - including businesses and real estate? Even foreign real estate. It's quite simple, but must be done correctly. According to IRS regulations, you can self-direct your tax-deferred retirement plans as long as the funds are held with a custodian or trustee, and are not co-mingled with personal funds. In fact, the investment cannot be for personal use at all or the IRA will face immediate taxation and penalties. So don't plan on buying a vacation home that you will use personally.

So what would be a good investment for your IRA funds? What about land? Rental properties? Property outside the U.S.? And what are the issues with financing? Let's open this discussion to our members and Real Wealth Network experts. Enjoy!

Questions about the Go-Zone and SRAP!

The state of Mississippi has an incredible program available for real estate investors called the SRAP or Small Rental Assistance Program. You can find out more about this program with this Guidebook:

http://www.realwealthnetwork.com/pdf/SRAP%20Round%202%20Guidebook.pdf

As with any great deal, people have many questions, as they should. Please let me know if you have any questions, and we will have our experts answer you promptly!

Professional Real Estate Status

Hi Mr. CPA:

I was referred to you by Kathy Fettke as an expert on real estate
professional status.

I'm gearing up to qualify as an RE professional for 2009. It will be easy
for me to log 750+ hours and more than 50% of my time, but my CPA questions
how I can be considered a material participant in my properties when they
are all out of state, I haven't seen any of them, and they all have property
managers.

Right now I spend most of my time LEARNING about real estate investing,
asset protection, tax strategies, etc., and SEARCHING for good properties to
buy. I'm trying to figure out what additional activities count so that I can
do those too. For example, should I buy a local property and remodel what I
can with my own hands and coordinate the rest of the labor with
subcontractors? Should I take an online course to become a home inspector?

Can you clarify what kind of activities would hold up well in an audit?

Thanks.

Concerned Real Estate Investor