Can you use IRA money to buy real estate? It’s an often asked question and the answer is yes. Not only can you do it, it is actually recommended as they easiest and best way to increase the rate of return on your IRA.

In order to invest successfully, however, there are some specific points you’ll need to bear in mind.

The first step is to make sure that your money is in a self directed IRA. Most companies will have you open up a traditional IRA, but you need to maintain some control. Using IRA money to buy real estate can be a great way to make money, but only if you are overseeing where your money goes and how you use it.

So can you use IRA money to buy real estate that you intend to live in or have a family member use? Unfortunately, no, you can’t. In order to qualify your investment as tax free or tax deferred, you can not have any direct connection to the property in question. It must be purchased and held by the IRA account and it must not be used directly by you or your relatives.

What you can do when it comes to using IRA money to buy real estate is to purchase property with the goal of making a profit through rental income or resale. You can either have rent paid directly to the account or, if you prefer, refurbish the property and sell it at a profit. Either way, you have income going into your IRA without accruing any Capital Gains tax, so it’s a win-win situation for you.

But what if you don’t have any experience with real estate? Can you use IRA money to buy real estate if you are a novice? Yes, you can.

Truth be told, it is actually one of the easier and safer forms of investing. And you’ll find that you can increase the returns on your IRA without the headaches involved in dealing with the fluctuating stock market.

With the difficulties in the mortgage arena these days, it may seem like a scary prospect to invest your future in real estate, but it really isn’t.

As a matter of fact, it is far more of a sure thing to use your IRA money to buy real estate than it is to gamble with stocks and bonds. Real estate, generally speaking, is a much more stable market and one where it is easier for you to control your investments.

But can you use IRA money to buy real estate and actually see a significant rise in your rate of return? The answer there is an unqualified yes. The difference can be almost double the amount of return on an average IRA account.

Everyone is thinking about their financial security these days and what could be more secure than a tangible investment such as real estate?

If you’d like to see your rate of return increase significantly and breathe a little easier about your future, then consider putting your funds in a self directed IRA and investing in real estate.

Make your money work for you now and you’ll be able to reap the rewards when you retire.