You have many options in terms of investing your money for retirement. Along with popular retirement plans like 401(k)s and Individual Retirement Accounts (IRAs), many investors have started to seek new retirement funding solutions including investing in real estate. One such option that is gaining popularity is investing in real estate directly through an IRA account.
IRA real estate transactions are notoriously complex and there are many rules in place. Due to the strict regulations, it is very important to understand what you are doing before you begin. For example, the property you purchase must grow your IRA via the rental income or other earnings such as rental properties, farmland, or timberland. You cannot use the property for personal use nor can any members of your family. The purchase itself must be done solely with your IRA funds and title must be issued to the custodian of the IRA, which ensures that this is the legal owner of the property.
If you choose to purchase real estate with an IRA, you must open an escrow for the transaction. It is very important to choose an escrow company experienced with IRA real estate transactions to avoid legal complications or potentially costly errors. At New Era Escrow, we take pride in our years of experience handling complex IRA escrow transactions. We will manage all aspects of your IRA custodian purchase and ensure the property is vested in the name of the IRA custodian. Contact us today to open an escrow, then rest easy knowing that we will perform due diligence to ensure your transaction meets all state and federal guidelines.