The SF Gate ran a great piece on real estate investing through self-directed IRAs. Check it out here. But the article did overlook a critical player in the self-directed space...that of the adviser or consultant. Here's the follow-up email I sent to the reporter.Carolyn, this is a great article. Feels like the PR machines for Entrust, Equity Trust and Pensco helped to provide info on this piece. Your article does a great job of highlighting the benefits of investing in real estate through self-directed IRAs, as well as pointing out some of the potholes to avoid. But it overlooks another player in the space that is helping to make this type of investing the fastest growing segment of the IRA market....the self-directed adviser or consultant.
For most, investing in real estate through self-directed IRAs is a first on two levels. They've never invested through a self-directed IRA, nor have they ever made a real estate investment. That is a daunting challenge, but one that is easy to overcome. More and more real estate professionals are specializing in self-directed IRA investing. But some, like our firm www.FreedomGrowth.com, are also specializing in the creation of the self-directed account. What type of self-directed IRA you choose, as well as which custodian you select, can impact the bottom line of your investment. And once you own the property, a good adviser will continue to provide advice on what you can, and more importantly can't do, to keep your IRA in the good graces of the IRS.
The custodians are allowed to tell you what is and isn't legal within your self-directed IRA, but they are prevented by law from telling you whether a particular investment makes sense. That's why a professional that specializes in a certain type of investment is a necessary partner for most investors. With real estate, being advised as to whether a particular property...or tax lien, trust deed, real estate note, etc....makes sense is critical information that most ordinary investors find extremely valuable.
So for those new to this type of investing, and to those reporting on it, make sure you know that quality help is out there. The cost to have an adviser on your team is minimal, even free to most real estate investors. Why wouldn't you help to stack the deck in your favor?
Again, great article. Thanks for helping to spread the word.
