Little Known Secret about Buying Real Estate Investment Property Using 401k & IRA Funds
One of the best kept secrets for you is that they have the ability to purchase investment properties using their vested 401K or IRA funds. In fact most real estate agents don’t even know that this is a perfectly legal, legitimate retirement investment strategy. In fact, only about 1% of active investors know they can do this.
OK, so you’re probably asking yourself why don’t I know about this? or How come I have never heard of this?
Well the answer is pretty simple. Most financial advisors don’t want their clients to know about this strategy because it would result in lost commissions and management fees.
So why is this a good investment strategy? It gives you the following benefits:
· It helps you diversify their retirement investment portfolio to assets other than equities, mutual funds, ETF’s, bonds, etc.
· It provides you clients with tax deferred rental income and capital gains prior to retirement
· It gives you the opportunity to purchase additional properties with accumulated funds in their account
· It provides you with a potential monthly income stream when they retire
So how do you go about doing this?
First, you must create and rollover some of their vested IRA or 401K investment.
Second, you will rollover existing IRA or vested 401k funds into newly established self-directed account.
Third, you find a good rental investment property with the help of a trusted realtor.
Fourth, follow trust company guidelines, purchase and close on the investment property.
Fifth, secure a tenant and start renting the property.
So is it time for you clients to become part of the 1% of savvy investors!
Please be aware that certain types of activities involving “disqualified persons” are prohibited when facilitating one of these transactions. Have your clients consult with their CPA or Trust Company advisor to find out what types of activities or transactions are prohibited.
July 31, 2017
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