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.

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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.

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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.

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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.

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Ready to Take the Next Step?

If you're eager to explore this investment path further, we're here to help.