Most investors treat taxes as something to worry about in April. They file, they pay, forget about it and then they get back to doing deals. Taxes are an afterthought, not the forethought, but the best investors I know think about taxes year-round. Tax strategies help guide their funding decisions — and nowhere is that more powerful than in how you use your retirement accounts.
The IRS Already Gave You a Framework
Congress designed retirement accounts to encourage savings. The contract is simple: you get tax deferral (Traditional IRA) or tax-free growth (Roth IRA), in exchange for leaving the money alone until retirement. But what most people don’t realize is that the investment options extend well beyond what Wall Street offers. With a self-directed IRA (SDIRA), you can invest in what you know — including real estate. You get to leverage your knowledge.
That means the property down the street, the private loan to a local rehabber, or even a share in a commercial partnership could all be held inside your IRA.
Why Real Estate Fits So Well
Real estate has always been attractive to investors for its tangible value, cash flow, and appreciation. Inside an IRA, those returns compound tax-advantaged. Rental income flows back to
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