Have you thought about buying rental property in Florida? Will you invest with your own money, or will you use the cash in your IRA, 401(k), or Health Savings Account? With a self-directed retirement plan, you could put your tax-advantaged savings to work in real estate!
Whether they seek affordable living in the year-round warmth of the Sunshine State or a fresh start near the beach, hundreds of thousands of people move to Florida every year. Use your self-directed IRA in Florida to invest in rental properties and capitalize on this demand!
How does buying rental property with your retirement account differ from buying with your non-retirement money? You may find there are more similarities than differences when it comes to a real estate IRA in Florida – IRAs, 401(k)s, and Health Savings Accounts that own real estate carry the same tax advantages as those that hold publicly traded equities.
Per the chart to the right, investing in property with a retirement account can be comparable to using your personal money, except a retirement account can provide considerable additional tax benefits. IRS rules regarding alternative retirement assets do exist, so please feel free to contact NDTCO with your questions.
|Tax-Deferred Plan||Taxable Plan|
|Will I pay taxes this year on my asset’s earnings?||No! Earnings on plan-owned assets can be tax-deferred.*||Yes|
|Can I get a loan to complete the investment?||Yes! Your account can pursue non-recourse financing to execute a real estate transaction.||Yes|
|Can I partner with others?||Yes! Your account and other investors (or their accounts) can consolidate capital to obtain an asset together.||Yes|
|Who chooses the right rental property to buy?||You! Your account “owns” the asset, but the decision is still yours!||You|
|Can I only purchase rental property?||No! In addition to rental properties (commercial or residential), your account can invest in fix & flip projects, undeveloped land, etc.||No|
*Unrelated business income tax (UBIT) may apply. Contact our office for more information.
Buying property in Florida using a real estate IRA is easier ever! At NDTCO, we combine technology with live customer service representatives to comprehensively encourage a smooth and efficient investment process. From your account opening, to the execution and management of your real estate transaction, and until the time comes to sell your investment property, NDTCO is with you!