RE Investing through Self Directed IRA's, HSA's, & 529 Plans

**BlueOceanRE** · 04-05-2008, 07:48 PM

I have recently been informed that individuals can self direct their own retirement, health savings and college savings plans to invest in real estate. I am trying to find out if anyone has any experience with this type of investment. The tax deferred growth potential seems to be pretty phenominal. I have run some projections and I have concluded that you could potentially pay for your entire retirement with as little as a $25,000 initial investment and no additional contributions. Your child's entire college education with around $5,000 initial investment when they start school. If anyone has any experience with this type of investment or is interested in finding out more, I would love to discuss it in depth.

**Jfcal208** · 04-05-2008, 11:31 PM

I recently attended a seminar on Self Directed IRAs also and find this to be a goal. I learned of one individual that bought a property using a self directed IRA and was intending to rent it and an offer came if. If I recall she had user the IRA to do a 10k deposit and then wound up selling the property and madelike 60k, so the return in a very short time was 600%. This has my attention as well. Entrust Cama was the firm(no compensation or otherwise, just what i Remember). I plan for it to be part of my overall strategy moving ahead.
Joe

**BlueOceanRE** · 04-06-2008, 09:22 AM

Hey Joe,

I actually have moved my IRA to a self directed custodian. My attorney who specializes in real estate and tax law is setting me up an LLC that my IRA will buy. Then I'll have checkbook control of the assts and will not need to deal with the custodian except at tax time. This was a roll over from old employers.

I am self employed and a full time investor. Now I am going to set up a Self Directed Roth 401K for my S-corp. This will allow me to put away up to 44K per year. The contributions will be post tax but the profits (distributions) will be all tax free. So I could make an unlimited amount and pull it out tax free once I start to take distributions. I also found out that you can take an early distribution without penalties. I think it is called a 729 early disribution (I have to verify that).

I actually have been attending a Real Estate Education School. Every class is a wealth of knowledge. Not just real estate but taxes, corporate structures, and retirement planing.

Thanks for the input. I'll try and find out more about Entrust Cama.

Let me know if you have any questions. The process is a little bit of a challenge, but now that I have it figured out I'm excited.

David

**Jfcal208** · 04-06-2008, 09:27 AM

I just quickly read your response and I am going to review it carefully when I have a minute to breathe. This is exactly along the lines of my fascination with this area. Thanks for the insights.
Joe