At Tampa Wholesale Property, we often get asked by investors about buying investment properties in Tampa FL.
When it comes to buying an investment property or rental property, you need to know how you’re going to pay for it. Can you use your IRA to buy local investment properties?
Self Directed IRAs for Real Estate – Can You Use Them To Buy Tampa Rental Properties?
First off, IRA refers to an individual retirement account.
IRA’s traditionally hold investments like stocks, mutual funds, etc. This is the mainstream way most people save for retirement. But, since you’re reading this article you know that real estate can be a GREAT option for increasing your wealth.
How can you use your IRA to grow your retirement fund, earn the tax benefits of the IRA, and reap the benefits of Tampa real estate too?
Some Simple SDIRA (Self Directed IRA) for Real Estate Rules To Follow
No “Self Dealing”
If you’re using your self-directed ira for real estate in Tampa you are forbidden from self-dealing.
Self-dealing is outlawed with your SD IRA in the sense that it can’t purchase land or property (both commercial and residential) for the owner or any family member to reside in. It is also prohibited from selling property or land to the owner of the IRA or family members in the process of business dealings in Tampa.
The Process of Buying Tampa with Your Self Directed IRA
There are very specific rules that you have to follow if you’re using your SD IRA to purchase Tampa FL properties.
Once you provide the correct documentation for purchasing the local Tampa investment property to the self-directed ira custodian, the custodian will start the purchasing process on behalf of the self-directed IRA real estate.
All the costs related to the purchase of the property are channeled through the self-directed ira for real estate. It’s vital that it contains enough cash to pay for these costs. Failure to provide the funds within the IRA will lead to the forfeiture of tax benefits and the penalties to be paid by the IRA.
Choose The Type Of Self Directed IRA Wisely To Use For Your Real Estate Investments
There are lots of options when it comes to self-directed IRA’s.
Not all SD IRA’s allow you to buy real estate. You’ll have to do your research to find the best SD IRA custodians so you can start buying Tampa properties.
NOTE: We’ve worked with many SD IRA companies and we’ve found the best providers who are very experienced in working with real estate within an IRA. Call us today at (813) 603-7103 or email us through our contact page and we can give you information on the best SD IRA companies for Tampa FL real estate investments.
Some Self Directed IRAs have more restrictions than others. As an example, some of require that you submit the investment details to them to analyze and then send the cash from the account.
There are other accounts that give you whats called “check book control”. An investor in self-directed ira for real estate with control of the checkbook is able to make purchases by just writing checks rather than having to go through the lengthy process of having to pass it through the custodian first. This lets you take advantage of deals on which you have to act quickly. Many of our local Tampa investment properties go fast).
Your Role In The Investment After The SD IRA Purchases It
You as the owner of the self directed IRA account have the ability to really manage the investment in a hands on manner. The roles include: receiving checks for rent payments from tenants, managing the properties, etc. – everything you’d normally do as the owner of an investment property.
Of course, there are more guidelines that you have to follow if you plan on using your self directed IRA for real estate in Tampa, so make sure you do your homework and do these two things immediately:
- Find a great self directed IRA company / custodian: This is the first step. You have to get this in place before you even think about purchasing anything through your IRA. If your current IRA holder won’t allow you to buy and hold real estate, call us at (813) 603-7103 and we’ll refer you to the best local custodians. They’ll be able to help you transfer your current IRA to your new self directed IRA.
- Find great Tampa investment property experts, like us at Tampa Wholesale Property. One of the best ways to get great properties in Tampa FL is by working with a professional investment property company like ours. We find high discount properties (both single family and multi-family) throughout Tampa and sell them to investors at discounts so you can turn them into solid profitable rental properties. Join our Preferred Buyers List Here >>
We can help you get rolling with your SD IRA for real estate. Reach out to us at the phone number below or send us an email and we’ll walk you through the process, point you to the best SD IRA resources locally in Tampa, and get you on our Preferred Investment Property buyers list.