Frequently Asked Questions
( FAQs)

If I can invest in Real Estate using my IRA without taxes and penalties,
why hasn’t my broker told me about this?

This is a frequently asked question and the answer is most surprising. Most people
and their stock broker question this strategy because they have not heard of it
before or have never studied it. The fact that it is the policy of most stock brokerage
firms refusing to allow you to invest in real estate or other non-traditional investments
has nothing to with the law. It does have to do with the brokerages not knowing
enough about the strategy to advise you or that the brokerages do not earn the
same multiple commissions on the investment of real estate as they do with stocks
and mutual funds. As a result, as a policy matter most brokerage firms decided not
to even tell you about this investment option.

Is it legal?

The answer is YES! It is not fair to assume that because you have not heard of
holding real estate in retirement accounts that it is not legal. The investment activity
in your retirement accounts is generally guided by the Internal Revenue Code
Section 408. While the code does not specify which transactions are legal, the
Code is very specific as to which transactions are prohibited. Not only is this
strategy legal, it has been implemented thousands of times over the past 20 years
by individuals just like you.

Is my IRA money safe?

The custodian that holds retirement assets is a registered trust company. In order
to register as a trust company, the institution must meet stringent state and federal
requirements and maintain adequate reserves. Your money and retirement assets
are held in a separate account for your benefit that is not subject to the creditors of
the Custodian. Further the Custodian never has control of your money or assets,
you are always in control.

What if I can’t afford the property with just my IRA?

There are a number of strategies you can use and still invest IRA funds legally.
For example, you may hold the property in equity with your IRA or with other family
members in equity or in their IRA.

What type of IRA’s are eligible to hold Real Estate?

All types of IRA’s are eligible. Traditional IRA’s, Roth IRA’s, SEP IRA’s,
401(k) Rollovers are all eligible.