Investing in real estate with a Self Directed IRA account allows you to defer taxes and build your your retirement income at a more rapid pace than you could using after tax proceeds. You may be able to make contributions to your IRA that can then be used in addition to the property’s income to pay it off as quickly as possible. Your goal should be to have as many free and clear properties with no debt when you retire. Once your properties have no debt you should use your income to diversify and make other investments. This is why Insurance Companies pay cash for income producing properties. They then have cash flow without debt which puts you in a much better position to weather any financial storms. If you start small with properties like duplexes, triplexes, or quadraplexes and put down a substantial down payment to begin, this can help you create a strong financial foundation. If you select properties in areas that are in demand and growing and invest enough equity at the beginning, you will reduce your risk by having positive cash flow from day one.
Patrick Moorton, The Author, is President of Income Realty Advisors Inc., a real estate firm that specializes in selling income producing real estate throughout the State of Florida. Patrick can be reached by email at: email@example.com or by phone at 239-272-1640