Although many operators and investors do not know this, it’s possible to invest in real estate using a retirement account. The subject has been made quite complicated, but if you take the time to get clear on what it entails, it’s a great tool to make your nest egg work for you. Here to shed light on investing in real estate with your retirement account is Josh Plave, of Wall to Main, a platform dedicated to helping educate investors on how to build a better future through commercial real estate.
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In this episode, we hear how inheriting IRAs when Josh was young led to a fascination with retirement plans. He then explores how we can use these plans to invest in various assets. We learn about what’s prohibited and what’s permitted as well as other important factors to consider. These accounts require specific expertise, which is why Josh recommends opting for a niche advisor rather than a conventional custodian. Along with this, we also learn more about the tax implications and what to keep in mind, how Josh and his family pool their money to spread risk and invest in more assets, and why you should not be intimidated by this type of retirement account. To learn more, be sure to tune in today!
Key Points From This Episode:
- Josh’s background, what his company Wall to Main does, and his interest in retirement accounts.
- How inheriting IRAs led Josh to private money lending and then to investing in multifamily.
- Debunking the myth that you can’t use your retirement account to invest in multifamily.
- Important factors to consider when using a retirement plan for real estate investing.
- What you can and cannot do with a self-directed retirement account.
- Why Josh advocates for checkbook control and not using a conventional custodian.
- Finding advisors who specialize in the self-directed IRAs.
- You and your retirement account are separate entities, so all income must be passive.
- Prohibited actions with checkbook retirement accounts.
- Tax implications that you need to keep in mind with self-directed IRAs.
- Understanding the difference between UBIT and UDFI.
- A CPA who focuses on real estate will be able to help navigate the tax with SDIRAs.
- Do not be intimidated by the SDIRA process!
- The hardest part of syndication, a recent business improvement, and the biggest contributor to Josh’s success.
[bctt tweet=”All income that comes into a retirement account actually needs to be passive. — Josh Plave” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Josh Plave
Josh Plave is the founder of Wall to Main and a full-time multifamily investor. Investing with his family, they hold a portfolio of over 700 units across three markets. Josh’s experience in retirement accounts began at 16 when he opened his first Roth IRA and began trading equities. Since then, after the unfortunate passing of his grandfather and mother, he was left with multiple Inherited IRAs. Through careful research and structuring, Josh has been able to further the legacy of prior generations and accelerate the growth of his family’s capital. This experience led to the creation of Wall to Main, where the lessons learned and opportunities found are meant to be shared, free of cost, for those who seek to preserve and grow their wealth for a prosperous future.
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