Self Directed Real Estate IRA / 401K

Have you ever wished you could do something else with you retirement IRA or 401K other than being at the mercy of the market? So did I.

After the last Wall Street debacle and watching my retirement funds shrivel, I decided to look into other options. A few investors I know pointed out the possibility of creating a special arrangement where you can transfer part or all of your retirement funds into your own IRA or 401K using a local bank account which you control and have check writing abilities.

With this kind of plan you can invest in the much more stable prospects for Austin area real estate. Fund your own flips, buy and hold rental properties, invest with other investors in larger projects, or other things. The only catch is this is a retirement fund. Just like your IRA or 401K, you cannot take profits out of the account without penalty. Whatever you invest has to be returned to the fund along with any capital gains made through the investment. And of course you have a new form to complete with your annual tax report to keep the IRS up to date.

I’m currently looking for projects to invest in. I plan to start simple and straight forward, and not get ahead of myself. I’ll try to provide updates in the blog section about the process as I go through it. I used a local firm which specializes in setting up these plans for investors. I wanted local support, not a 1-800 number.

If you think you might consider doing this do you own due diligence. Here’s some links and things you might find interesting.

Wikipedia – Self Directed IRA

Forbes Article

Asset Exchange Strategies – Local firm (no I do not get referral fees)

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