House Buyers in Houston TX and the nearby areas. If you need to sell your Houston house, we can give you a cash offer for an hour’s house. We are a credible home buying company in Houston that can close in as little as 7 days or at your own convenience. If you want to learn more about Houston house buyers like us, give us a call at 281-306-5191 or contact us here on our website.
We wrote a recent article about putting local Houston investment property into your self directed IRA… if you haven’t checked that one out… head over here.
In this article we’ll walk through some more things to look out for and how to use your IRA to buy real estate in Houston Texas.
So let’s dive in!
Putting your money into an IRA or similar investment vehicle can be a great idea.
Everybody knows that.
But with taxes on their way up, it might be an even better idea to create a self-directed IRA, which will allow you to widen your investment options to include local Houston investment real estate in order to defer your taxes and end up earning a better rate of return in the long run.
If you are considering this option, it might be a good idea to determine if it’s a good move for you, and if it is, here’s how to use your IRA to buy real estate in Houston.
A Few Quick SD IRA for Real Estate Facts in Houston
- In order to use your IRA to buy Houston real estate, that property must be a business, not a personal home, a second home, or a rental (but there is a simple way to put rental properties into a SD IRA… below)
- The property you buy must not be something you already own
- It must also be a purchase directly into the IRA
How to Use Your IRA to Buy Real Estate in Houston
It is possible to buy a rental property with an IRA, but you must open a custodial account then transfer money into it. It’s a simple process that we can help you out with. Just give us a call at 281-306-5191 and we can walk you through the process.
There are many rules associated with this type of transaction, so be sure you understand and agree before you buy them. It is also possible to buy a home for the purpose of “flipping” it, but only if you are in the flipping business.
Furthermore, there is a limit to the number of flipped properties you can purchase in one year in Houston with your self directed IRA.
Again, the best course of action is to determine the rules for the process to make sure you can live with them.
SD IRA Investing Limits
The rules that govern these types of investments do not allow a traditional mortgage with an IRA.
Instead, you need to have enough money in your IRA to make the purchase. There are costs associated with administering the IRA, so you must make sure that your IRA has enough money in it to cover those expenses too.
Again, if you don’t already have a great self directed IRA custodian… reach out to us and we can connect you with the ones we know of who are very real estate friendly. Just give us a call at 281-306-5191 or shoot us an email through our Contact form and say “I’m looking for SD IRA resources for buying Houston investment properties”… and we’ll get back to you right away.
Basic Rules of Houston Investing (even with real estate)
There are many rules in investing that can help you determine a good purchase from a bad one. One of the most important is to diversify your portfolio.
As tempting as a real estate purchase might be in Houston, it’s a good idea to follow this advice when using your IRA to make a purchase. Just as is the case with any big investment, it’s always a good idea to check with a qualified financial adviser before you make a purchase to get an independent view of the long term as well as the short term outlook.
In the end, using your IRA to invest in local Houston Texas investment properties can be a great route.
It helps you grow your portfolio using real estate with the tax benefits of the IRA.
We Buy Houses Houston
There is however an easier way to sell your house fast. Sell your house directly to us and avoid agents and long waiting periods! Make no repairs, and pay no agent commissions. No need to list or wait months hoping the house will even sell. We are home cash buyers in Houston Texas that buy houses fast in any condition. So you’re looking for investment properties here in Houston, just give us a call at 281-306-5191 or fill in the form below, or just visit our homepage for more information. We are fair, friendly, honest, and have tons of reviews to show for it.