Self Directed IRA For Real Estate – What Are the Rules in Palm Beach County?

It is undeniable fact that self directed IRA is a great investment vehicle. However, many savvy investors who we work with here at Home Solutions FLA question us about investing in real estate property through their self directed IRA. Most of the question revolves around buying investment properties in Palm Beach County and how are they going to pay for it. Also, they are curious to know that whether they can use their IRA to invest in local properties. We Home Solutions FLA are going to walk you through the ways you can use your IRA for investment in real estate and what are the rules in the Palm Beach County.

How Can You Use Self Directed IRAs to Buy Palm Beach County Rental Properties?

IRA stands for Individual Retirement Account and it traditionally holds investment like mutual funds, stocks, which is the mainstream way most people save for their retirement. Investing in real estate through an IRA is a great opportunity to increase your wealth. But mostly the question arises as to how IRAs can be used to grow your retirement funds and earn both benefits of tax and Palm Beach County real estate too? Investors are taking real estate properties as investment through a self directed IRA, however; you have to ensure that law is being followed when you use your IRA for your local Florida investment.

Self Directed IRA (SDIRA) Real Estate Rules to Follow

Do not engage in Self Dealing

You are not supposed to engage in self dealing if you are using SDIRA for real estate in Palm Beach County. Self dealing is outlawed as you cannot possibly purchase a land or property, both for commercial and residential use of the owner or any family member to reside in with your SDIRA. Also, you are prohibited from selling land or property to the owner of the IRA or family member in Palm Beach County in the process of business dealing.

The process of buying property in Palm Beach County with your SDIRA

To use SDIRA to buy properties in Palm Beach County Florida, there are certain rules that you have to follow. Once you provide the correct documentation for purchasing the local Palm Beach County investment property to the self directed IRA custodian, the process of purchase will start on behalf of self directed IRA by the custodian. Also, you have to make sure that you have enough cash for all the costs related to the purchase of the property are channeled through Self Directed IRA. Failure to meet all the cost will result in penalties to be paid and forfeiture of tax benefits.

Wisely Choose the Type of Self Directed IRA for Your Real Estate Investment

When it comes to IRA, there are lots of options, but not all Self Directed IRA allows you to buy real estate property through their account. Thus, you will need to conduct research to find the best SD IRA custodians that can help you in buying real estate properties in Palm Beach County.

Note: As we have worked with many SD IRA companies, we have found many professional providers who have experience of working with real estate within an IRA. We can give you information on the best SD IRA companies for real estate investment in Palm Beach County. Contact us today at (561) 370-8335 or email us through our Contact Page.

Checkbook Control

Some Self Directed IRA has more restrictions than others, for example, they require you to firstly submit the investment details to them and then they would analyze it. Only after analyzing, they will send the cash from the account. But there are accounts that give you “check book control”. An investor in self directed IRA for real estate with control of the checkbook is only able to make purchases by just writing checks rather than going through a long process on having it pass it through custodians first. This allows you to take advantage of deals since many of our local Palm Beach County investment properties go fast.

Your Role in the Investment after the Self Directed IRA Purchases the Property

Your role is very significant after you have made the purchase as the owner of the self directed IRA. SD IRA has the ability to manage the investment and the roles includes from receiving checks for rent payments from tenants to managing properties, Thus, your role will be same as any investment property owner who manages his real estate property.

However, there are more guidelines that you have to follow if you plan on using a self directed IRA for real estate in Palm Beach County. You must do your homework and immediately do these two things:

1.     Find a great self directed IRA company/custodian

This is the very initial step to find a great custodian even before you think about purchasing anything through your IRA. If your current IRA holder does not allow you to buy and purchase a real estate property, then call us at (561) 370-8335 and we will gladly refer you to the best local custodians who will help you to transfer your current IRA to your new self directed IRA.

2.     Find a couple of great Palm Beach County investment property experts

One of the best ways to get great properties for investment here in Palm Beach County Florida is to work with a professional investment company like ours. We are Real Estate Company that will help you to find high discount properties both for single family and multifamily all around Palm Beach County. We sell those discounted properties to investors like you who can then turn their investment into profitable rental properties.

We can help you get rolling your investment with your SD IRA for Real Estate

All you have to do is to reach us at the phone number below or send us an email and we will help you through understanding the whole process and also point you to the best self directed IRA companies available locally in Palm Beach County. We will also get you on our preferred Investment property list.

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