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The Timing is Right to Invest in Real Estate Through a Custodial IRA | Business

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The Timing is Right to Invest in Real Estate Through a Custodial IRA
The Timing is Right to Invest in Real Estate Through a Custodial IRA

 

The recent stock market “correction” had a lot of people checking their 401K statements and rethinking their short- and long-term investment plans. Yet one unique investment strategy — investing in real estate through a self-directed custodial IRA — continues to provide an outstanding return and, perhaps more importantly, peace of mind for cautious investors.

“Finding sound investment properties in the Western New York marketplace is quite possible with the correct planning and execution,” said Michael Olear, licensed broker with The Olear Team/MJ Peterson Real Estate. “There are many great opportunities right now for smart investors to purchase real estate, build a stable retirement portfolio and amass wealth.

“Personally, I have been buying and selling real estate in a self-directed Custodial IRA account for the past five years,” said Olear. “My wife and I have bought, rehabilitated and then sold seven properties this way. Unfortunately, not many people know about the benefits of the self-directed custodial IRA.” This vehicle is ideal for individuals who want to invest in real estate but may not realize they have the money to do so, noted Olear. 

“A self-managed custodial account can be started by rolling over existing IRA funds to a qualified custodian, and this gives you the capital you need to get started,” he said. Buying in a custodial account can be for properties to rehab or property to hold and rent out. The key is that although you retain control and direct what happens with the account, you never directly take title or receive any proceeds from any transaction. The custodian’s involvement eliminates taxation when a property is sold at a gain.

Housing prices in Buffalo and across Western New York continue to trend upward, so those already invested in real estate are in an excellent position. Fortunately, there’s still plenty of room for those just getting into or still considering real estate as part of their investment portfolio. But timing is everything, and the time to act is now, especially with fixed-rate mortgages remaining in the very affordable 3 percent interest rate range. 

For more information on purchasing real estate as an investment opportunity, please contact Michael Olear and The Olear Team at 880-4442 or michael@olear.com. The Olear Team/MJ Peterson Real Estate is located at 1244 Niagara Falls Blvd., Amherst. You can also visit www.olear.com for more information and related articles.

 

 

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