Learn How to Buy Real Estate in Charleston Using Your IRA

Looking to add to your real estate portfolio here in Charleston? Using your IRA may be a great fit.

How to Use Your IRA to Buy Real Estate in CharlestonIn this article we’ll walk through some more things to look out for and how to use your IRA to buy real estate in Charleston, South Carolina.

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 Charleston 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 Charleston.

A Few Quick SD IRA for Real Estate Facts

  • In order to use your IRA to buy Charleston 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 Charleston

It is possible to buy 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 (843) 881-7171 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 to them before you buy. 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 Charleston 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 (843) 881-7171 or shoot us an email through our Contact form and say “I’m looking for SD IRA resources for buying Charleston investment properties”… and we’ll get back to you right away.

Basic Rules of 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 Charleston, it’s a good idea to follow this advice when using your IRA to make a real estate 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 Charleston, South Carolina investment properties can be a great route.

It helps you grow your portfolio using real estate with the tax benefits of the IRA.

If you’re looking for investment properties here in Charleston join our SC Homes Inc. Preferred Property Buyers List through the link below.

FREE: Join Our Preferred Buyers List For Access To Our High Discount
Charleston Investment Properties Here >>

Recently, we wrote an article about “Tips on Buying Charleston Real Estate with your IRA“… if you haven’t checked that one out… head over here.

Steve Banis

About Steve Banis

When I originally began investing in Real Estate, I wasn’t a real estate agent. And I still do not list houses as an agent! No, I’m not proposing that I list your home, or have you sign some kind of agency agreement. My involvement with you and your property is for our own investment portfolio.…. not the score-sheet of a Broker. My background includes that of being an executive for several Fortune 500 companies since 1968, an owner of real estate since 1975, a businessman in Boston, MA and Charleston, SC. I am a VETERAN of THE UNITED STATES ARMY, beginning my Service career January 1964, in Columbia, SC on Tank Hill at Ft. Jackson. I have been up and down the ladder in my business as well as my personal life - therefore I am well qualified to understand the various situations and challenges of the homeowners we meet. We can help provide solutions to various real estate challenges and situations. My passion is to assist in the sale and purchase of real estate. The rest of this report tells you how our company, CASH HOMEBUYERS of SOUTH CAROLINA, LLC., will assist you by purchasing your home.

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