Wichita KS Realty News

IRA Real Estate Investment Series; Overview

IRA Investing In Real Estate Series Announcement Wichita KS realty news


WICHITA, KS: (Wichita KS Realty News)  As real estate is becoming more and more mainstream as a specific asset class, many individuals are looking for ways to increase their investment exposure into real estate.  Funding choices have grown with the advent of crowd funding.  Here is a top 10 article ranking these types of funding sources.  Typically, Investing and specifically funding real estate investments is a daunting task, with most mainstream lenders typically requiring 30 percent down payments and a couple of years of property management to use the income from these investments to qualify as income for borrowing against the property.  This is why REIT’s and ETF’s (exchange traded funds) focusing on real estate have become increasingly popular. They decrease the burden to participate and focus on a specific asset class. But for those that are more hands on and want to focus on individual properties, typically within their own community, there are fewer choices.

Most portfolios are invested in equity assets (stocks and equity mutual funds) and bonds (treasuries and bond funds) and the lion share of most individuals investable assets are in tax qualified account, IRA’s and company sponsored 401(k)s.  For those looking to increase their exposure to real estate, the next step is to buy real estate “inside” their IRAs.  But, how can you do that?  It’s simple, and complex at the same time.  IRS regulations allow for real estate, in many forms, to be purchased inside of individual IRA’s.  That’s the simple part.  The complex part is properly structuring the IRA to avoid disqualifying events that can penalize you for not following the rules.  If you follow the rules and avoid the pitfalls and disqualifying events, investing in properties in your IRA has the potential of being quite a lucrative endeavor.

This series will focus on the how and why.  We will address each aspect of tax qualified real estate investing, from custodianship of the assets to the disqualifying events to avoid.  This is a very detailed topic and there is a lot of information available to research to ascertain if this is a good fit for your retirement assets.  We will do our best to provide you with the options and identify additional resources to assist you.  And always, it is recommended to solicit advice from licensed and qualified individuals when investing and our information is not intended to replace such advice.

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Richard Wood

Richard Wood, our Editor and contributing Author shares his insights of the national economic data and helps identify trends in the economy and specifically how they effect the local real estate markets in and around Wichita Kansas.
With a top down approach, his focus starts with the Federal Reserve policy makers and their direction on interest rates. Employment, housing starts, and refinancing of current mortgages all come into play when trying to understand how they fit together. Even generational housing trends are important and will be discussed.
Richard brings more than 30 years of knowledge of these markets and will assist the reader in better understanding how they come in to play.