InvestorLoft Real Estate Investing Blog

It’s no secret – real estate is a great investment. People invest in real estate and sometimes don’t even know it. Many employer-sponsored retirement plans have REITs as investment options and they’re included in those pre-formulated investment models (Target 2025 Retirement Model, for example) and as á la carte options that people invariably click.

But what most people don’t know, however, is that you can have a house in your IRA. Or even an apartment building…land…a condo. It’s all possible – you just have to think outside the brokerage account.

Real estate is what’s referred to as a non-correlated asset. In other words, its performance isn’t dictated by the performance of the equity and fixed income markets. Thus, it’s a valuable diversifier for your investment portfolio and can act to offset losses should the stock and bond markets go haywire.

Using real estate in your IRA has been allowed by the IRS since the 70s, so why don’t more people know about it (and why isn’t your stock broker telling you about it?)? Well, it’s because pre-packaged solutions provided by wirehouses, online brokerages and financial advisors are easy to sell and cost little to maintain. Having a real estate or self-directed IRA that can invest in real estate actually takes some education and a knowledge of what you’re buying. And – here’s the kicker – your financial advisor doesn’t make a commission on that self-directed IRA you’re going to open because he can’t open one for you. That’s the most common reason you haven’t heard about it.

Another great library of resources for every level of investor can be found at IraPad.com. All of their resources are free, so just sign up and open the oyster to your financial future online. While real estate in your IRA isn’t for everyone, learning something new never hurt!

Locate luxury real estate bargains with ease

When searching for investment property, it’s good to know where your markets of choice stand. Are prices rising? Falling? Are there areas you should consider (but haven’t for some reason)? We thought Forbes.com hit the nail on the head with their Interactive Housing Map. Most of our blog readers and site visitors are on the hunt for real estate bargains across the country. This map lets you search by zip code (awesome!) and see if your zip code of choice made the top 500 most expensive zip codes. It will then let you know the specs on the market (median home price, income, percent price decrease, inventory levels).

If you’re a primary home buyer looking for a luxury home or perhaps a real estate investor looking to pick up a bargain in a high-priced area, Forbes.com’s interactive map can help you start your search. If you find an area you like, check and see what’s available in the InvestorLoft.com Prop Scout investment property search engine and then grab your Realtor – and grab those bargains!