Colorado Real Estate | Buying Property in Retirement Accounts

Many people, including our own licensed brokers make real estate investments with funds from their retirement accounts are a good investment alternative to the standard stock market investments.

Here’s how it works: you must write a contract in the name of your IRA and only use funds from your IRA to purchase or remodel and update a property. Any rents received must go straight back into your IRA account and you cannot use the property yourself or rent it to anyone in your family. You can purchase 100% or in fractional ownership through an LLC and buy with family or friends IRA’s as well. Husband and wife teams like Jan and Dave Baer two of my clients and now broker associates can purchase 50/50 with IRA’s and be tenants in common. According to some reports investors can buy property and have made six digit profits in as little as two years.

Many people have the misconception that you cannot use your IRA or retirement funds for real estate investing. It certainly is not illegal and many people prefer using this option as opposed to the currently unstable stock market conditions. We at Legacy Real Estate Brokers Inc. would gladly refer you to a local Colorado called Entrust who can assist you with these sometimes-complex real estate transactions. As far as loans go the only way to make a purchase with a loan is to use a “nonrcourse” loan, which can help you, leverage your assets in your IRA account.

Most importantly we want people to realize their are other options and ways to invest your retirement assets and real estate is currently an exceptional option to consider. It is a strong buyers market and there are many opportunities we would like to show you.