If you’re a full-time real estate investor, you probably have some properties reserved to fund your retirement. However, if you’re a regular investor trying to diversify your portfolio through real estate investments, you may find it difficult to fund the purchase of a property. What is the best way to gain real estate exposure without additional financial burden?
Use your retirement money to invest in real estate!
Yes, it is possible and the IRS allows investing in real estate for your retirement.
How to Buy Real Estate With Your Self-Directed Solo 401k Retirement Plan?
- Open a self-directed Solo 401k retirement account.
- Fund your account through eligible rollovers and annual contribution.
- Find an investment property for your retirement account.
- Use your retirement funds to purchase the property.
- Your retirement plan will hold the title of the property.
- Use non-recourse financing if you run short on funds.
- Repairs and maintenance must be paid through the self-directed Solo 401k retirement plan only.
- Redirect entire income generated by the property to the retirement plan.
What Happens When You Retire?
A self-directed Solo 401k allows you to invest in real estate with your retirement funds, hence offering better diversification and capital returns. Start leveraging the power of real estate investing to live a fulfilling retired life.