Jim Hitt Points Out Simple Mistakes to Avoid with a Real Estate IRA

American IRA CEO, Jim Hitt

A “Real Estate IRA” in this context is not a specific type of IRA, but actually a type of investment one can make with a Self-Directed IRA.

With many investors worried about where the stock market may be headed and left looking for alternatives, Jim Hitt of American IRA recently went to the AmericanIRA.com blog to point out how to utilize a Real Estate IRA—and how not to utilize one. Pointing out the “simple mistakes” investors can avoid, the blog post takes readers through some of the common pitfalls and puts Real Estate IRAs in their proper context for those investors who might be new to the idea.

A “Real Estate IRA” in this context is not a specific type of IRA, but actually a type of investment one can make with a Self-Directed IRA. In a Self-Directed IRA, one can take advantage of the wide scope of investments available by investing in real estate, precious metals, private companies, and a range of other options. In this blog post, Jim Hitt says, the goal was to provide readers with a basic understanding of why investors sometimes turn to real estate for their retirement investing—and which mistakes can be avoided for those just learning about this strategy.

The first mistake, Jim Hitt points out, is one that many people first researching the possibilities of real estate investing through a retirement account have to face early: the idea of using that real estate on a personal basis. For example, it is prohibited to live in real estate that an investor holds in an IRA. This keeps the account and the holder of the account separate. “Because this type of strategy is prohibited, it’s a mistake that people have to learn early on,” says Jim Hitt. “If an…

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