Even as the demand for rental housing has increased in most markets, self-directed IRA investors continue to prefer to flip houses vs. hold-to-rent properties
IRA Financial Group, the leading provider of “checkbook control” self-directed IRA LLC solutions, announces the finding of its internal survey which showed a continuation of a trend seen in the fourth quarter of 2014 – self-directed IRA investors’ preference to flip houses rather than rent them out. Even as the demand for rental housing has increased in most markets, self-directed IRA and Solo 401(k) Plan investors continue to prefer to flip houses due to a recent combination of price appreciation and decreased inventory, according to the IRA Financial Group survey. About 58 percent of investors surveyed said they preferred to flip the homes they purchased, while about 42 percent said they prefer a hold-to-rent strategy. “In light of the perceived shortage of rental units in many markets, we expected to see more self-directed IRA investors starting to move toward a buy-and-hold strategy,“ stated Adam Bergman, a tax partner with the IRA Financial Group. “Interestingly, our internal survey showed that self-directed IRA and Solo 401(k) plan investors continue to see the opportunity in flipping real estate, “ stated Mr. Bergman.
The primary advantage of using a Self Directed IRA LLC to make investments is that investments can be made by simply writing a check. In addition, all income and gains associated with the IRA investment grow tax-deferred and return to the IRA LLC. With IRA Financial Group’s self directed IRA LLC solution, traditional IRA or Roth IRA funds can be used to buy real estate throughout the United States and globally in a tax-deferred account by simply writing a check and without the need of custodian consent or steep custodian fees. “The growth in the real estate market in 2013 has allowed our clients to generate significant growth in their retirement accounts through appreciation in their Self-Directed IRA LLC account, “ stated Mr. Bergman.
IRA Financial Group’s Self-Directed IRA LLC for real estate investors, also called a real estate IRA with checkbook control or a Self-Directed IRA real estate flipping, is an IRS approved structure that allows one to use their retirement funds to make real estate and other investments tax-free and without custodian consent. The Self-Directed IRA LLC involves the establishment of a limited liability company (“LLC”) that is owned by the IRA (care of the Roth IRA custodian) and managed by the IRA holder or any third-party. As a result, the Self-Directed IRA LLC provides the retirement account holder with greater control over his or her retirement assets allowing the individual to make traditional as well as non-traditional investments, such as real estate tax-deferred and with much lower annual fees.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market’s leading “checkbook control” Self Directed IRA and Solo 401(k) Plan provider. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.