Really Real Estate Investing

The strategy below has allowed real estate investors to amass great compounding wealth through real estate and is not a commonly-known strategy.

Many investors are interested in investing in physical real estate, not just Real Estate Investment Trusts (REITs), which are traditionally offered in investment portfolios by financial advisors. Open “self-directed” qualified retirement accounts allow investors to identify and invest in real estate with money in their retirement accounts. This has been a helpful tool because Americans carry most of their savings in company retirement plans, think 401(k) plan, that they didn’t know could be used toward an investment property’s cost. Cash is king in high-interest rate environments, so it is as good a time as any to consider these accounts.

This strategy is especially helpful for real estate investors who are looking to return high compounding growth on their investments because the growth on the physical real estate investments is tax-free or tax-deferred inside of a qualified retirement account, allowing them to buy higher-priced properties sooner as their investment gains in these accounts are not reduced by short-term capital gains or long-term capital gains.