How do investors learn about the opportunity to invest for retirement in real estate?
Word-of-mouth and online research are the most common channels. Investors hear about the opportunity from other real estate investors, business associates, family, or real estate agents. Yes, you! Agents are spreading the word because they see a huge opportunity to grow their business. Since the crash of the stock market, investors are trying to secure their hard-earned retirement dollars with more tangible assets like real estate. They are researching IRA investment opportunities, talking about it with friends, and attending online events to educate themselves.
What are some real estate IRA strategies?
Real Estate IRA investors may specialize in different areas of real estate, such as single- and multi-family houses, vacant land, or commercial properties. Some investors “flip” houses based on their goals, while others may decide it’s best to hold on to their investment properties for a longer period of time. They are doing creative things like partnering with other IRA investors to make large purchases. It’s important for you to have a team who understands these transactions.
What you should know as an agent
Investing in real estate with a self-directed IRA is not very different from purchasing real estate for personal use, with which many of you are familiar. There are rules and processes which your client must follow to do it correctly. The investment property becomes an asset of your client’s IRA, which means the IRA owns it. The property is held for the exclusive benefit of the IRA. Therefore, the offer needs to be made in the name of the investor’s IRA as the buyer, and not your client, the individual investor. From there, the self-directed IRA company works with you, your client, and the necessary third parties to make sure the transaction is efficient and seamless. It’s important to note that all income from a rental property goes into the IRA. The income is tax-deferred until a distribution is taken from the IRA.
What do I need to do to work with real estate IRA investors?
Real estate investors spend a lot of time online searching for deals, new opportunities, and they see a lot of ads. Ask yourself: If they come across your ad, what helps set you apart from other agents? The answer may be providing more opportunities than other agents with the real estate IRA. Partnering with a real estate IRA company who provides educational tools for your clients is key to help you grow your business by giving your clients more investment opportunities.
Find out how you can generate more referrals, leads, and repeat business with your free download of How to Help Your Clients Invest in Real Estate Tax-Free.