Unlocking Real Estate Investments Through Self-Directed IRAs

Hello, savvy investors! Today, we're diving into a lesser-known but incredibly effective strategy for growing your retirement savings—investing in multifamily real estate through a self-directed IRA. If you're intrigued by the idea of funneling your retirement savings into tangible assets like real estate, this blog post is for you!

 

Disclaimer: This article is for informational purposes only and should not be considered as financial or tax advice. Always consult with a qualified financial advisor or tax professional before making any investment decisions.

 

What's a Self-Directed IRA?

A Self-Directed Individual Retirement Account (SDIRA) is a special type of IRA that gives you more control and flexibility over your investment choices. Unlike traditional IRAs, which limit you to stocks, bonds, and mutual funds, SDIRAs open up the possibilities for investing in alternative assets like real estate, all while offering the same tax advantages.

 

The Real Estate Dilemma

You might be asking, "How can I possibly save enough to invest in real estate?" Believe it or not, you may already have the funds you need—they might just be sitting in your existing retirement accounts. Many investors find that a significant chunk of their capital is tied up in these accounts, making it difficult to diversify into real estate.

 

Enter the Self-Directed IRA

Transferring a portion of your existing IRA or another retirement account into a self-directed IRA enables you to allocate those funds toward real estate investment opportunities. Here's how:

 

Steps to Get Started

  1. Open an SDIRA: Choose a custodian that specializes in real estate investments. Our team has built relationships with trusted SDIRA custodians like Alto IRA and Forge Trust, and we can assist you in selecting the best option for your needs.
  2. Fund Your SDIRA: Rollover tax-deferred funds from another retirement account to initiate your self-directed IRA.
  3. Submit a Direction Form: The custodian will provide a form for you to indicate your investment choices, directing them to allocate funds to specific real estate projects.
  4. Complete Paperwork: The custodian takes care of the administrative work and funnels the funds into your chosen real estate investment.
  5. Track Your Investment: You and your custodian will have access to all investment reports and updates, keeping you informed every step of the way.
  6. Enjoy Returns and Tax Benefits: Any income and appreciation from your investment are funneled back into your SDIRA and remain tax-deferred until you decide to withdraw the funds during retirement.

 

Note on Tax-Deferred Earnings and UBIT

While tax deferral is a substantial benefit of an SDIRA, be aware of the potential implications of Unrelated Business Income Tax (UBIT). If your investment involves debt financing, a portion of the income generated may be subject to UBIT. Always consult with a tax professional for advice tailored to your specific situation.

 

Why Choose This Route?

Many of our investors choose this strategy for investing in Gratūs Funds real estate projects. We've fostered partnerships with reliable custodians to help you navigate the process seamlessly. Opting for a self-directed IRA not only diversifies your retirement portfolio but also mitigates the risks associated with market volatility.

 

Ready to Take the Next Step?

If you're eager to explore this investment path further, we're here to help. Contact us to discover how a self-directed IRA can pave the way for profitable and stable real estate investments.

Interested? Reach out, and let's discuss the investment opportunities that await you.

‍

Recent Posts

Why I'd Invest in the Midwest—Even If I Didn't Live Here

Seizing Year-End Opportunities: The Strategic Power of the Tax Code

Understanding Market Cycles with Ray Dalio: A Perspective from Gratūs Funds

71% Fundraising Slump in Real Estate: A Signal to Invest or Retreat? 

‍Making Profits While "Losing Money": The Hidden Incentives in the Tax Code

Investing is simple. Here’s how.

Step 1:

Schedule a Meeting

To get started, simply book a 30-minute meeting with someone from our team. We’ll share a bit about the fund, answer any questions you have, and make sure your investing journey and our mission are in alignment.

Step 2:

Complete the Investor Info & Funding form

Once you have all your questions answered, fill out our online investment form. This  secure form gathers all the information needed for creating an account and funding your investment. It takes 10-15 minutes to complete.

Step 3:

Sit Back and Relax

Now that you’re in, you can sit by and watch your money work for you while we find, build, and manage properties for the fund. You’ll receive updates along the way as the fund continues to perform.

Book A Meeting
Menu
HomeAboutHow We WorkOur InvestmentsWhy Multi-Family Real Estate?ResourcesFor Advisors
Contact
718 Washington Avenue N
Floor 4
Minneapolis, MN 55401
hello@gratusfunds.comPrivacy Policy
about

Gratūs Funds is a private equity company providing main street investors greater access to alternative investments in real estate and private business.

© 2024 Gratūs Funds. All rights reserved.

The information contained within this website is neither an offer to sell nor a solicitation of an offer to buy any securities described herein. An offering will only be made only by delivery of all the requisite offering documents. You should read these offering documents (including each of their Exhibits) in their entirety in order to understand fully all of the implications and risks of any offering of securities. An investment should be made only after careful review of all the offering documents. The information contained herein is subject to the representations provided in the offering documentOur Offering Circular and other offering documents may be found at www.sec.gov. An investor may invest no more than 10% of the greater of their annual income (including the income of their spouse) or their net worth together with their spouse excluding the value of the person’s primary residence and any loans secured by the residence (up to the value of the residence). Different rules apply to Accredited Investors and non-natural persons. Before making any representation you’re your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(c) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.The Offering Materials And This Website May Contain Forward-Looking Statements And Information Relating To, Among Other Things, Gratus Funds Its Business Plan And Strategy, And Its Industry. These Forward-Looking Statements Are Based On The Beliefs Of, Assumptions Made By, And Information Currently Available To The Company’s Management. When Used In The Offering Materials, The Words “Estimate,” “Project,” “Believe,” “Anticipate,” “Intend,” “Expect” And Similar Expressions Are Intended To Identify Forward-Looking Statements, Which Constitute Forward-Looking Statements. These Statements Reflect Management’s Current Views With Respect To Future Events And Are Subject To Risks And Uncertainties That Could Cause Gratus Funds Actual Results To Differ Materially From Those Contained In The Forward-Looking Statements. Investors Are Cautioned Not To Place Undue Reliance On These Forward-Looking Statements, Which Speak Only As Of The Date On Which They Are Made. Gratus Funds Does Not Undertake Any Obligation To Revise Or Update These Forward-Looking Statements To Reflect Events Or Circumstances After Such Date Or To Reflect The Occurrence Of Unanticipated Events.