I am a big fan of Self-Directed IRAs because there are many benefits to using them, but one of the biggest pros is diversification. You will hear this term a lot. The experts say it is important to diversify your portfolio. There are many different ways to diversify your portfolio, and of course, an investor could diversify it across the stock market, but they may be missing one of the biggest segments of the economy: real estate. I say this because Real Estate has been my specialty for years since retiring from the military.
There are many different ways to use a Self-Directed IRA to buy and invest in real estate. People use it to buy real estate directly and hold that as a rental for long term appreciation and cash flow. They use it to buy and flip properties.. They use it in the form of a bank or in lending like my Private Money Partners who provide the funding for my real estate purchase. These are all appropriate investments inside a Self-Directed IRA and they allow for true diversification. But for the purposes for my Private Money Partners I educate them on using a Self-Directed IRA to lend capital to real estate buyers like myself.
********************************* If you are reading my blog for the first time, let me inform you that… My company buys single-family houses and I write this blog weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments, i.e. people that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where we get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with us to provide the funding which empowers us to be able to purchase real estate on a continual basis. Simple, it’s because we teach them a secured way to earn better rates of return than they are currently earning.
So everybody wins. It’s a WIN-WIN-WIN !!!
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position.
Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).