One solution that a vast majority of our real estate investor clients to use is a “Self Directed Real Estate IRA”. This is a tax free rollover!
Essentially you roll over/convert your current IRAs/401k/etc into a Self Directed IRA at one of the self directed IRA custodians. Thus they transfer your funds from Citi, Morgan, Fidelity, etc to these self directed firms and you are free to use these funds for real estate based investments, etc.
Once done you can invest in virtually anything you want, when you want to. You can invest in investment real estate, make real estate loans, etc. You could even invest in a hot dog stand if you felt so inclined.
Now the same rules about forbidden transactions apply (cannot lend to your family, or buy a vacatin home for yourself, etc).
We’ve found freedom from Wall Street by being able to invest in debt/equity in real estate with funds that were previously held hostage by the large brokerages.
Google “Self Directed IRA” and become enlightened. Most people have never heard of this process as the big boys want to crush it.
You’ll find a lot of info, and custodians. Over the years we’ve narrowed our custodian providers down to two who provide great service at the lowest relative fees.
