Maximize Retirement Savings with Self-Directed IRAs for Real Estate
Hello, forward-thinking investor! If you’re an accredited investor looking to supercharge your retirement savings, self-directed IRAs might be your ticket to real estate wealth. At Lokosee Capital, we’re pumped about how these accounts can fund investments like our distressed multi-family properties and mortgage notes. But it’s not a strategy for everyone. Let’s break down what self-directed IRAs are, how they unlock real estate opportunities, and why they’re a savvy move when done right—all in a quick 5-minute read.
What is a Self-Directed IRA?
A self-directed IRA (SDIRA) is a retirement account that lets you invest in alternative assets like real estate, mortgage notes, or private funds, unlike traditional IRAs limited to stocks or bonds. By rolling over funds from a 401(k) or existing IRA, you can invest in properties like duplexes or funds like our 506(c) offering, all while enjoying tax-advantaged growth (tax-deferred for traditional IRAs or tax-free for Roth IRAs). It’s a way to diversify your retirement portfolio with real estate’s high-yield potential.
Why Isn’t Everyone Diving In?
SDIRAs sound like a slam dunk, but they require sharp tax knowledge, strict compliance, and real estate expertise. Here’s why it’s not a breeze:
Tax Knowledge: IRS rules ban “prohibited transactions” (e.g., using the property personally), and missteps can disqualify your IRA, triggering taxes and penalties.
Strict Compliance: You need a custodian specializing in SDIRAs to manage funds, adding fees and paperwork. Novices often miss these details.
Real Estate Expertise: Choosing high-return assets, like distressed triplexes with 8-10% cap rates, demands market insight and deal-sourcing skills.
At Lokosee Capital: our team navigates these complexities, leveraging SDIRAs when they fit our 506(c) fund to maximize investor returns.
How SDIRAs Boost Real Estate Investing
When used correctly, SDIRAs offer big benefits:
Tax-Advantaged Growth: Defer taxes on gains (traditional IRA) or grow tax-free (Roth IRA), amplifying long-term wealth.
Diversification: Real estate, like multi-family properties, hedges against stock market volatility.
High Returns: Our fund targets 12-15% annual returns by investing in undervalued assets, making SDIRAs a powerful tool for retirement growth.
Flexibility: Use SDIRA funds to invest in properties, notes, or funds, aligning with your risk tolerance.
SDIRAs aren’t always an option in our fund: it depends on the investment structure. Consult your tax professional to confirm eligibility.
Why a Fund Simplifies It
Using an SDIRA for real estate solo is tricky—IRS compliance, custodian management, and picking winning assets require expertise. Our 506(c) fund at Lokosee Capital makes it seamless when applicable, sourcing high-yield properties and notes while ensuring compliance, delivering passive returns without the stress.
Things to Keep in Mind
SDIRAs carry risks—IRS violations or poor investment choices can erode gains. Custodian fees (typically $200-$2,000 annually) and illiquidity are factors. Accredited investors must verify their status (e.g., tax returns or CPA letter), but it’s a quick step.
Disclaimer: This content is for informational purposes only. Consult your tax advisor or financial planner to ensure SDIRA investments and our fund align with your goals.
Ready to Grow Your Retirement Wealth?
Self-directed IRAs can unlock real estate’s potential for your retirement, but they demand expertise to shine. At Lokosee Capital, we’re dedicated to using strategies like this, when appropriate, to build wealth. Curious about how our fund fits your IRA?
Contact Lynn Horner, VP of Marketing, at 407-490-1034
Email Lynn@lokoseecapital.com
Or visit www.lokoseecapital.com.
Let’s talk about growing your wealth the smart way!
