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Nick Pham, Broker

Nick Pham, Broker

Top San Jose Realtor

Growing Your Retirement IRA/401k Funds by Investing in Real Estate!

There are many discussions, arguments about the Return on Investment in the Stock Market or Real Estate – which is better?!? Well, I don’t have the answer to this million $ question, as all of us have our own risk tolerance. However, what I can share with you is how to use you use your retirement fund to invest in real estate in other alternative investment types allowable by the IRS.

While a regular IRA or 401k allow us to invest in Stock, Bond, Certificate of Deposit (CD), Mutual Fund managed by someone else, a Self-Directed IRA (SDIRA) account empowers the owner the full power to control his/her retirement funds to invest in Real Estate, Private Equity, Private Lending, Tax Lien, Notes and other alternative assets.

As an independent business owner, I have learned that I am solely responsible for my retirement. Yes, I can contribute to a regular IRA, hire someone to invest in the stock market for me… But the daily volatility of the stock market does require me to track the market daily and be somewhat vigilance about the stock(s) chosen. Unlike many other risk takers, I am more of a long-term investor, So I have chosen Real Estate as the platform to build my long-term investment!

If you are interested in real estate investments and would like to leverage your IRA funds to build and grow your retirement account, call me! As a real estate professional, I have also managed my own retirement funds to invest in real estate related assets. I don’t just talk the talk; I do the walk myself. There are many options, and I would be happy to show you what I am doing, and help you strategize your retirement future.

Here are few questions that may indicate SDIRA is what you are looking for:

Do you want to use your retirement savings to buy rental properties, a single-family home, a multi-unit, a commercial building or land?

>> Using your SDIRA fund, you can purchase your investment property, the rental income earned go back to your retirement account, tax free until you are ready to take distribution for your retirement.

Do you want to increase your retirement funds from rental income, while building long-term equity your investment property? A double winner, perhaps.

>> While a regular IRA can provide gains/losses immediately, an investment property with your SDIRA could earn rental income tax free in your SDIRA, while your investment could earn equity over time. Thus the win-win for your retirement!

  1. An simple example: You purchase a property for $500,000.00, the rental income could be $30,000 annually (this money goes back to your SDIRA account).
  2. You decided to sell your property 10 years later, at a conservative appreciation rate of 6% of return per year. Your $500,000 home would be $895,000 after 10 years
  3. After 1 years, you have accumulated $300,000 from rental income + your property value is at $895,000 = $1,195,000 from your $500,000 initial investment.

Would you like to use your retirement $$ to lend money to other investors and earn 8-10% in return annually? Or invest in another business, startup, crowd funding?

>> You can become a Private Lender, and lend your SDIRA money to other investor, joint venture with other investors in other real estate investments, Real Estate Investment Trust (REIT), or potential business. Your income/gain goes back to your SDIRA tax free, until your distribution.

You have the power to control and maximize your investment returns using your IRA fund. There are very simple disqualifying rules that are easy to follow. I can show you how…

Nick Pham | Real Estate Broker | 01365281 | 408.425.5304

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