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How can you buy real estate with an IRA?

Updated: Jul 4, 2020


People are self-directing their IRA into NJ multifamily real estate properties to avoid the 2008 recession financial dynamics. Take advantage of the free webinar from Peoples Capital Group every 4th Thursday. Register.

Peoples Capital Group has been helping passive investors build wealth in NJ real estate for 10 years. Visit www.PeoplesCapitalGroup.com to find out if you qualify to start earning passive income and pay less taxes via investing in real estate. IRA's and 401K's are accepted. -- https://www.facebook.com/peoplescapitalgroupnj/

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Aaron Fragnito: All right, ladies and gentlemen, welcome back to the Passive Cash Flow Podcast. This is episode number three, we are going to talk about how to self-direct your IRA into real estate. There is, what is it, 3 trillion with a T, $3 trillion in your IRAs throughout the country. It is a massive amount of wealth and so many people think the only thing you could do with your IRA is invest in stocks and bonds or handed off to Merrill Lynch to move into a stock, but that is not the only thing you do with your IRA.


You could also take control of your IRA, move it into a custodian and completely change the income on your IRA. Completely change the benefits of your retirement and what you could do with your retirement money, your family and that is what it's all about, create a better wealth for your family so you have more time to enjoy life. Guys, you want to learn more about how you can get invested in our buildings, go to PeoplesCapitalGroup.com, we work with lots of passive investors to buy apartment buildings in New Jersey.


Let's jump into the topic today, the IRA, how you can self-direct your IRA. You can roll your 401k into your IRA, then you can self-direct your IRA. This podcast is for anyone that has a 401k, has an IRA. Anyone that knows other people that have IRAs and 401k's because a lot of people don't understand this and this is an important thing to talk to your friends and family about.

They might get a little bored, who wants to talk about their IRA, but it's crazy what you can do with your IRA and how many financial advisors say you can't do this, but you can self-direct your IRA. Here's how it works. Let's say your IRA is currently with Merrill Lynch, and they're moving it through stocks and bonds. Now, you want to diversify into real estate, well, one of your options is to buy a REIT but a REIT is just a stock that's backed by real estate.


It's not like actually owning a share of an LLC that owns real estate, which is what we do here Peoples Capital Group. It's better to own a share of an LLC that owns a building because then you get the tax benefits of it, you get the tax depreciation. When you own a REIT, a stock that's backed by real estate, you do get dividends from it and that's great and the stock can grow in value and that's great.


REITs are actually a good investment, but you wanted to diversify the actual real estate and get actual tax depreciation and keep more your money instead of give more of it to the government and therefore make more ROI. Then you want to self-direct your IRA into real estate and take control of your retirement account. First thing you need to do is hire an IRA custodian.

There's tons of them out there, they don't cost much at all. I think it's more like $50 to start an account. New Direction IRA is one of the IRA custodians we've worked with before. In fact, if you go through us to them, I think they wipe the $50 application fee, so that's a nice thing. Then there's like Next Generation Trust and Equity-One, there's tons of IRA self-direct custodians, all right.