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Broker Builds Business Using Self-Directed IRA Accounts

It is a smart real estate broker who realizes, like Ole, that for every client that buys or lists a house there is likely a rollover 401k that can be self-directed in to real estate and other non-traditional retirement investments.

By: Catherine Wynne

“There are twice as many buyers out there” exclaimed Realtor® Ole Dunn in Grand Junction Colorado. Mr. Dunn, after hearing about how he could invest his own IRA in real estate, got to work putting together deals for his and his wife’s IRA. “If I am to help my clients I will need to do this myself first” is Ole’s belief. After sponsoring a class for his investors, he feels that the idea is gaining momentum on Colorado’s Western Slope where there is currently a housing shortage for the incoming oil and gas exploration and drilling industry. He has a lot of clients who are interested in the “real estate IRA” concept and, because of his knowledge and experience in the process, will come to him when it’s time to make that IRA real estate investment.

It is a smart real estate broker who realizes, like Ole, that for every client that buys or lists a house there is likely a rollover 401k that can be self-directed in to real estate and other non-traditional retirement investments. Opportunities also exist in real estate offices for bridge loans and second deeds of trust for both the brokers and their clients to expedite real estate deals.

Many individuals are tired of their money taking a ride on the stock market roller-coaster and most of them would be interested in self-direction and the world of investment choices available through brokers like Ole and other knowledgeable professionals. Traditionally most financial advisors have been rooted in securities either through restrictions with the companies they work for or through lack of knowledge about non-security investments.

The IRS states on the FAQ section of their website that “invest in real estate is not prohibited”. There are rules, of course, that the real estate be for investment purposes only and that there be no personal use of the property. For experienced real estate investors, this and other rules should not present a problem. The key to investing an IRA in real estate or other non-traditional investments is working with a knowledgeable IRA administrator who provides assistance and education for that first self-directed investment.

We think Ole is on to something. Dissatisfaction with stock market and the desire to own a tangible asset like real estate will create more clients for a real estate broker like Ole as well as satisfied IRA investors, whether it be on Colorado’s western slope or anywhere in the country.

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