3 Options to Consider When Trying to Decide How to Invest in Real Estate with Your Self-Directed IRA

As real estate prices fall and foreclosures hit all time highs, using your self-directed IRA to invest in real estate could potentially put you light years ahead of others market.  Did you know that by some accounts, only 3% of workers invest in real estate as a retirement option? The other 97% focus totally on traditional investments like stocks, bonds and mutual funds.  

Real estate has proven to be a sound investment. It is made even more attractive when you consider that you are investing for the long term. And, it is a “diversified” investment, as well.

Real estate can be a diversified investment. There is commercial property, residential property, raw land, mortgages and mortgage pools, trust deeds, etc.. Following are three investment options and why you may want to consider them as viable options in this economic climate.

Beach Condominiums: The foreclosure rate is at an all-time, high, especially in many beach communities. This makes it a great time to look into buying beachside condominiums with your self-directed IRA with an eye toward vacation rental income. Once the market improves, you’ll be well situated to capitalize.

Raw Land: You can use your self-directed IRA to purchase raw land. Many areas that have suffered from natural disasters like hurricanes and tornadoes may have particularly good deals on raw land, which can later be sold to developers for residential or commercial development.

Invest in Commercial Properties: While the US economy has not reached the formal recession status, the general feeling is that it is slumping. This has a negative, trickle down effect on business. Many close or look to restructure. All of these factors add up to great investment opportunities for future gain.

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