Those who invest in Real Estate and are not using their IRA to the fullest advantage are missing out.  Here are some other reasons….

Self-Directed IRAs:

• Allow you to diversify your portfolio.
• Are great for Estate planning.
• Offers more flexibility than the 1031 exchanges because there are no timing problems.
• More control versus stocks and bonds.
• If you use leveraging, it allows you to buy rental property with 20%-35% down, based not on your income and credit history, but on the qualifications of the property that you purchase.
• Other than purchasing residential real estate for investment, you can also buy a business or extend loans to unrelated parties.
• Your IRA can be a financing tool to fund a loan for a non-qualified person’s purchase of a home.
• If the property is sold, the equity gained returns to the IRA account.
• Capital gain is tax-deferred.

Note: a ROTH IRA is even more advantageous because all income in it is never taxed (not just deferred.)