Many times I have people come to me with one of the following either a 1031, an IRA or a 401k and want to use those funds to invest in one of the syndication deals that I offer. In this article, I will be reviewing each of these things.
First, a 1031 exchange is often a single property such as a single family rental property. A 1031 exchange allows them to exchange their property for another property and defer the tax. There are some limitations to this type of deal.
Secondly, you cannot invest in a traditional IRA which is primarily geared towards stocks and bonds and big mutual fund houses. You can, however, set up a self-directed IRA. With a self-directed IRA, there are special custodians out there who will allow you to invest in things like businesses and real estate. I have a list of companies that we work with on this and though I don’t deal with a lot of the details I allow you to work with a custodian to see what is right for you.
Lastly, if you have your own business, a solo 401k is also a great way to invest. You cannot however in most companies take your traditional 401k at work and invest in our syndication deals.
To recap 1031 exchanges are difficult to do on your own personal investments to invest in our deals. Self-directed IRAs are an opportunity to invest with special custodians. Those same types of companies can help you invest if you have your own business.
Watch the following video to learn more.
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