If you’re reading up on Checkbook IRAs, you know they offer all sorts of great flexibility and control when you’re investing retirement assets. You can exercise your freedom on your terms, even writing checks from within the retirement account. But that leads to the next question: What do you do with your newfound freedom? Fortunately, the question opens up all sorts of investment possibilities that you can’t access with a traditional brokerage. Let’s look at some popular potential investments you can use when you’ve set up a Checkbook IRA.
Single-Family Homes
Investing in single-family homes can be the most straightforward way to generate rental income. These properties are often easier to manage than larger complexes, and demand for rental housing remains strong. With the right location and tenants, a single-family home can provide a consistent cash flow, too.
Multi-Family Properties
Multi-family properties, like duplexes and apartment buildings, offer multiple streams of rental income. True: They do require more management than single-family homes, but since you’re using an IRA, you’ll outsource that to a property manager.
Commercial Properties
Commercial real estate includes office buildings, retail spaces, and warehouses. These properties often have longer lease terms than residential rentals. Businesses leasing commercial space are also responsible for many upkeep costs, reducing your expenses as the owner. However, commercial investments typically require more capital upfront. And it may take longer to find tenants.
Raw Land
Buying raw land can be a great way to profit from future growth. If you invest in an area poised for development, you could sell the land at a higher price down the road. Some investors lease raw land for farming or commercial use while waiting for values to rise. The downside is that land doesn’t generate immediate income unless you find a way to monetize it.
Real Estate Investment Trusts (REITs)
If you want exposure to real estate without managing properties, a Real Estate Investment Trust (REIT) might be the way to go. REITs pool investor funds to purchase and manage income-producing properties, such as office buildings and shopping centers. They offer a more passive way to invest in real estate while still benefiting from market growth.
Private Mortgages
Rather than buying property yourself, you can use your Checkbook IRA to act as a lender. Private mortgages let you loan money to real estate buyers and collect interest on the loan. This can be a lucrative way to generate income without dealing with tenants or maintenance. The key is doing proper due diligence to ensure borrowers can repay the loan.
Fix-and-Flips
For those willing to take on a more active role, fix-and-flips can offer fast returns. By purchasing undervalued properties, making strategic renovations, and selling at a higher price, you can turn a profit relatively quickly. The challenge is managing costs and ensuring you don’t overspend on improvements that won’t pay off.
Rental Condos
Condos can be a great investment in areas with strong rental demand. They often come with lower maintenance responsibilities since homeowner associations handle common areas. In vacation destinations or urban centers, rental condos can attract long-term tenants or short-term renters willing to pay premium rates.
Mobile Home Parks
Investing in mobile home parks can be a smart move for those looking for high yields. Demand for affordable housing remains strong, and mobile home parks often generate steady rental income with lower maintenance costs than traditional properties. Managing a park does come with unique challenges, but for the right investor, it can be a lucrative niche.
Interested in finding out how you can set up a Checkbook IRA to get started in one of these investment niches? Reach out to TurnKey IRA at 844-8876-IRA (472).
Imagine a life where your retirement investments feel as easy to make as any other investment. Sure, rules are separating the two, but once you have a Checkbook IRA in place, you’d be surprised how natural it can feel to make retirement investments. Interested in learning more? Contact TurnKey IRA at 844-8876-IRA (472) for a free consultation. Download our free guide or visit us online at www.turnkeyira.com.
