Broker Builds Business Using Self-Directed IRA Accounts

“There are twice as many buyers out there!” exclaimed Realtor® Paul K in Denver Colorado. Paul, after hearing about how he could invest his own IRA in real estate, got to work putting together deals for his and his wife’s IRA.  “If I am to help my clients I will need to do this myself first” is Paul's belief.  After sponsoring a class by New Direction IRA for his investors in January, he feels that the idea is gaining momentum all over the Front Range where there is currently a housing shortage due to displaced former homeowners and low rental housing inventories.  He has a lot of clients who are interested in the “real estate IRA” concept and, because of his knowledge and experience in the process, have come to him when it’s time to make that IRA real estate investment.

It is a smart real estate broker who realizes, like Paul, that for every client that buys or lists a house there is likely a rollover 401k that can be self-directed into real estate and other non-traditional retirement investments.  Opportunities also exist in real estate offices for bridge loans and second deeds of trust for both the brokers and their clients to expedite real estate deals.

Many individuals are tired of their money taking a ride on the stock market roller-coaster and most of them would be interested in self-direction and the world of investment choices available through brokers like Paul and other knowledgeable professionals.  Traditionally most financial advisers have been rooted in securities either through restrictions with the companies they work for or through lack of knowledge about non-security investments.

The IRS states on the FAQ section of their website that “investment in real estate is not prohibited”.  There are rules, of course, such as the real estate must be for investment purposes only and that there be no personal use of the property.  For experienced real estate investors, this and other rules should not present a problem.  The key to investing an IRA in real estate or other non-traditional investments is working with a knowledgeable IRA administrator who provides assistance and education for that first self-directed investment.

We think Paul is on to something.  Dissatisfaction with stock market and the desire to own a tangible asset like real estate will create more clients for a real estate broker like Paul as well as satisfied IRA investors, whether it be on Front Range or anywhere in the country.