You would need to find a trustee who knows how to properly do a self-directed IRA. Note that you, family, or anyone you know cannot use benefit directly from the property. So you cannot use it to buy you home or vacation home. And it can be risky if you are invested in one property (what if it remains vacant?).
Written by jpocia03 about 5 months ago.
If you currently hold funds within an IRA, some can be used for a downpayment on a home. Otherwise, your other alternative is just cashing it in a paying the 10% and taxes (whichever bracket you are in). You could try to make is self-directed, but you need special qualifications to do so.
It is ridiculous for someone to purchase real estate at this point. No one knows how unstable the market is, and for how much longer it is going to be. Think about it. When you have monies invested in a mutual fund or stock, that is really all you can lose.
If you place your monies into real estate. You can destroy your credit, open yourself up to personal legal matters (if you are considering renting out), and you can lose the down payment. It’s extremely foolish, and takes more knowledge and expertise because no one is managing the investment for you, as per a mutual fund.
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