Self Directed IRA For Real Estate – What Are the Rules in Baltimore?

starting your self directed ira for real estate in Baltimore MD
A self-directed IRA can be a great investment vehicle… even for real estate! Before you buy your next Baltimore investment property… read this article first!
We get asked questions all of the time from savvy investors who we work with here at Baltimore Wholesale Property.

Most of the questions surround buying investment properties in Baltimore MD which we know a lot about.

One part of buying an investment property / rental property is how are you going to pay for it and if you are able to use your IRA to buy local investment properties.

Self Directed IRAs for Real Estate – Can You Use Them To Buy Baltimore Rental Properties?

First off, IRA refers to an individual retirement account.

IRA’s traditionally hold investments like stocks, mutual funds, etc, mainly because that’s the mainstream way people save for retirement.

But since you’re reading this article you know that real estate can be a GREAT option for increasing your wealth.

How can you use your IRA to grow your retirement fund, earn the tax benefits of the IRA, and the benefits of Baltimore real estate too?

Though the self-directed IRA real estate is increasingly being taken up by investors, you should do certain things ensure that the law is being followed to the letter when you use your IRA for local MD real estate investments.

Some Simple SDIRA (Self Directed IRA) for Real Estate Rules To Follow

No “Self Dealing”

If you’re using your self-directed IRA for real estate in Baltimore you are forbidden from self-dealing.

Self-dealing is outlawed with your SD IRA in the sense that it can’t purchase land or property (both commercial and residential) for the owner or any family member to reside in.

It is also prohibited from selling property or land to the owner of the IRA or family members in the process of business dealings in Baltimore.

The Process of Buying Baltimore with Your Self Directed IRA

There are very specific rules that you have to follow if you’re using your SD IRA to pick up Baltimore MD properties.

Once you provide the correct documentation for purchasing the local Baltimore investment property to the self-directed IRA custodian, the custodian will start the purchasing process on behalf of the self-directed IRA real estate.

All the costs related to the purchase of the property are channeled through the self-directed IRA for real estate. It is vital that it must have enough cash to pay for these costs. Failure to have the funds will lead to the forfeiture of tax benefits and the penalties to be paid by the IRA.

Choose The Type Of Self Directed IRA Wisely To Use It For Your Real Estate Investments

There are lots of options when it comes to self-directed IRAs.

Not all SD IRAs allow you to buy real estate so you’ll have to do your research to find the best SD IRA custodians so you can start buying Baltimore properties.

NOTE: We’ve worked with many SD IRA companies and we’ve found the best providers who are very experienced in working with real estate within an IRA. Call us today at (443) 863-9808 or email us through our Contact page and we can give you information on the best SD IRA companies for Baltimore MD real estate investments.

Checkbook Control

Some Self Directed IRAs have more restrictions than others.

For example, some require that you submit the investment details to them so that they can analyze it and then send the cash from the account.

There are also accounts that give you whats called “check book control”. An investor in self-directed IRA for real estate with control of the checkbook is able to make purchases by just writing checks. This enables the investor to avoid having to pass it through the custodian first, which can be a lengthy process. This lets you act quickly. This can be helpful because many of our local Baltimore investment properties go fast.

Your Role In The Investment After The SD IRA Purchases It

As the owner of the self directed IRA account, you have the ability to really manage the investment in a hands on manner. The roles include receiving checks for rent payments from tenants, managing the properties, etc – everything you’d normally do as the owner of an investment property.

Of course, there are more guidelines that you have to follow if you plan on using your self directed IRA for real estate in Baltimore so make sure you do your homework and do these two things immediately:

  1. Find a great self directed IRA company / custodian: This is the first step. You have to get this in place before you even think about purchasing anything through your IRA. If your current IRA holder won’t allow you to buy and hold real estate in it, call us at (443) 863-9808 and we’ll refer you to the best local custodians. They’ll be able to help you transfer your current IRA to your new self directed IRA.
  2. Find a couple great Baltimore investment property experts, like us at Baltimore Wholesale Property.  One of the best ways to get great properties here in Baltimore MD is by working with a professional investment property company like ours. We find high discount properties (both single family and multi-family) all around Baltimore and sell them to investors like you at discounts so you can turn them into solid profitable rental properties.  Join our Preferred Buyers List Here >>

We can help you get rolling with your SD IRA for real estate.

Just reach out to us at the phone number below or send us an email. We’ll walk you through the process, point you to the best SD IRA resources locally in Baltimore, and get you on our Preferred Investment Property buyers list.

Call Us For More Info On Buying Baltimore MD
Real Estate In Your IRA at (443) 863-9808

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