IRA's and 401k's

A Brief Introduction to IRA and 401(k) Investing

with AltInvest Partners LLC

There are a few key facts that you should know about using your IRA account or Small Group 401(k) or Rollover 401(k) for alternative investing:

1.  It is surprising and distressing to hear that some stockbrokers and investment advisors believe that you cannot, by law, purchase investments in real estate through your IRA or 401(k).  It is fully sanctioned - and it always has been - to invest in real estate using funds from your IRA/401(k) accounts! 

2.  Most brokerage and investment firms do not allow you to self-direct funds kept with them into real estate private placements.  This is because these custodians are simply not set up to deal with private placement investments in real estate. What they call self-directing is choosing between mutual funds, stocks or money markets.  That is not full self- direction.

3.  When you move some of your funds from your existing IRA accounts to a full self-direction account with a reputable, reliable and registered Custodial Administrator, you will be able to direct them to invest in anything that is permitted by the federal and state regulations.  In other words, investing in stocks, mutual funds, money markets and land and other income producing real estate, to name a few. 

5.  Setting up a new Full Self-Direction Custodial account is easy, if you use an experienced company like American IRA or New Direction IRA.  We work with both of them and, while we cannot act as custodians, we can assist you with the process and help you set up whatever size account you desire.

6.  If you do not have an existing IRA of any kind nor a roll-over 401(k) nor a small group 401 plan, we can direct you to these custodians and, together, get your new account established.  This would be a very good time to get one established as current laws may change regarding initial amounts you may deposit in this type of account.

7.  In our experience, some 401(k) plans pose a challenge.  Until you reach a point where the plan allows for partial payouts so that you can actually self-direct the funds, the 401(k) plan custodian probably will resist any investing in private placements in real estate similar to Wild Mountain III.  What you can do is examine your 401(k) document and see if you can take a partial roll over into an IRA.  If you can, the rest is simple to do and we will help you complete all paperwork.

8.  While many of our investment partners utilize their IRAs, others use cash to invest in Wild Mountain III outside of IRA, using personal funds. We can also explore with you the concept of “partnering” with your IRA to split acquisition or maintenance fees at the beginning and throughout the term of your Wild Mountain investment, which is a hybrid of the two approaches

9.  Our founding partner, Steve Smith, an experienced estate planning attorney, has recently published a clear, easy reading book on Investing in Real Estate through your IRA.  If you would like to have a free copy of the paperback version of the book, we will be pleased to send one to you.  Please click here and we will mail you a complimentary copy.

Request A Copy :: IRA and 401k Investment in Real Estate