Benefits of Using Real Estate in your IRA

• Steady Income
  Most Real Estate Programs provide income generated from leases/rents. Income is typically paid out monthly and is proportionate to the amount the investors puts into the program. A REIT, for example, must generate 75% of its income from real estate and pass through 90% of that income to its shareholders.
  
• Hedge Against Inflation
  The Consumer Price Index says that every year the cost of goods goes up by 3-4%. By investing in Real Estate, you stay ahead of inflation because the value of your holdings are usually increasing by more than the inflation rate.
  
• Avoid Stock Market volatility
  The characteristic stability of commercial and institutional real estate serves as a counter to the traditional stock market fluctuation. This type of real estate is more of a protective place for capital.
  The long-term lease aspect of core commercial property creates significant monthly income and helps stabilize you investment portfolios by offering low volatility and regular monthly yields. Additionally, REITs can weather the economic volatility of interest rates and employment rates through strategic lease planning. The goal is to minimize leases which expire at inopportune times while simultaneously locking in tenants over a longer term in advance of an expected economic downturn.
  
• Diversification available geographically and by Asset type
  Institutional real estate asset types include Multi-family, Office, Retail, and Industrial. If possible it is recommended that you own more than one type of real estate asset in order to spread out your risk. Additionally, because real estate performance correlates strongly to regional factors, ownership in more than one region is also a diversification strategy.
  
• Estate Planning
  Assets held in IRA accounts are generally exempt from the claims of creditors. In addition, purchasing property within an IRA can give you a way to pass certain assets to beneficiaries outside of probate.
  

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Property photos shown here are being provided for educational purposes only, to illustrate the different property types available in the real estate market. These photos are not intended to represent any particular type of TIC offering nor are they intended to represent any current or future TIC offerings.