When real estate investors discover they can use their IRA, solo 401(k) or other tax-exempt account to invest in real estate, they sometimes mistakenly think it will take a while to build up the balance needed
to get started with any type of significant real estate investing.

          It’s true that CONTRIBUTIONs are limited; in tax year 2021 (you can still make contributions for ’21 through April 15th, 2022) you can contribute up to $6,000 to a traditional or Roth IRA when you’re under age 50; up to $7,000 when you’re 50 and older.

          Despite these relatively low dollar amounts,
there are strategies for real estate investors looking for ways to grow their IRA in a short period of time. Provided you follow the rules, wholesaling or flipping options provide two such opportunities grow a small retirement account significantly.

Wholesaling in an IRA

          Wholesaling is essentially an A to B to C transaction. The seller is in some sort of position to sell the property at a discount. You as the wholesaler have the opportunity because you found this deal to negotiate a discounted price and sell it at a higher price to an end buyer: an investor who buys and rehabs properties.

          You can wholesale properties in your Roth IRA or traditional IRA, or a Coverdell education savings a ... Read More…