In this video Michael Del Prete discusses three easy steps on how you can roll your 401k or IRA into a Self Directed IRA so that you can start investing in Real Estate.
Hello, this is Mike Del Prete with wehearthouses.com. Today we are going to discuss how you can invest in real estate using your retirement savings with a self-directed IRA. I find it kinda funny that all the years that I was a 9-5 employee, I never knew that I had the options to use my retirement account outside of my employer. Not until I became a full time real estate investor did I learn that there was a law created in 1974 that gave employees the option to invest their own money and get this the list of what you can invest in is way larger than the list you can’t invest in and my choice was real estate.
One of the first steps you need to do in order to get started is find a self-directed custodian not a custodian from Fidelity or Smith Barney those companies will not allow you to invest in real estate it doesn’t mean you can’t invest in real estate it means that Fidelity or Smith Barney can’t invest, their focus in the stock market. Their models is designed to profit by charging you fees and commissions. Actually did you know that over the life time of your 401 k plan 70% of your hard earn money goes towards fees?
Here’s three easy steps to get started. Step #1 do some research find a custodian that handles self-directed retirement plans. I’ll share some resources in the notes below that will lead you in the right direction. Step #2 roll over transfer your funds to the new self-directed IRA account. Step #3 find a real estate opportunity you would like to invest in, contact your custodian. The self-directed custodian will then work with you and the title company in order to complete the purchase of your new investment.