We often pass by retail stores without fully realizing the diverse range of commercial real estate options they represent. Today, we're taking a closer look at two specific types of retail enterprises that CMK Properties favors for investment and development: discount and specialty retail.
Many investors are not aware of the ability or the benefits to investing in real estate through a self-directed IRA.
CMK Properties recently held an investor gathering with discussions led by Mindy Gayer, business development manager at The Entrust Group, and John Navin, founder of The Navin Group. Attendees gained insight on the benefits of investing in real estate through self-directed IRAs, in addition to wisdom on crafting a stable investment plan for the year ahead.
Benefits of Investing in a Self-Directed IRA
The Entrust Group specializes in self-directed IRAs, and Mindy Gayer highlighted a few of the key benefits of investing in these accounts that many investors are unaware of. Put simply, a Self-Directed IRA (SDIRA) is a retirement account with a unique structure designed to invest in privately-held alternative assets. “Self-direction means that you, as the investor, manage the portfolio and perform the necessary due diligence for each investment.”
So, what advantages do self-directed IRAs offer to investors?
- Control: SDIRAs allow investors to make their own decisions to invest in what they know, understand, and feel confident in, unlike traditional IRAs that are limited to stocks, bonds, and mutual funds.
- Diversification: With a SDIRA, investors can mitigate risk and volatility by investing in a variety of asset types, from real estate to private equity, precious metals and more.
- Tax Savings: Depending on the type of account, contributions to SDIRAs may be tax-deductible, tax-deferred, or grow tax-free, allowing you to keep more of the money that you invest.
What You Can Invest in With a Self-Directed IRA
There are seven types of retirement accounts that can be self-directed into non-publicly traded assets: Traditional IRA, Roth IRA, Simplified Employee Pension (SEP) IRA, Individual 401(k), Savings Incentive Match Plan for Employees (SIMPLE) IRA, Health Savings Accounts (HSA), and Education Savings Accounts (ESA).
While each of these plans offer their own advantages and disadvantages, they all empower account holders with the ability to invest in alternative assets. Some examples of possible investments include:
- Real Estate
- Single-Family and Multi-Family Properties
- Oil and Gas
It should be noted that there are a few restrictions to self-directed IRA investments, namely, collectables, such as art or coins, life insurance, and S Corps.
How to Craft Your Investment Plan
With these practical tips in mind, John Navin shared a reflective approach to investment planning that is suitable for all market landscapes, including the inflationary period we find ourselves in now.
First and foremost, you must have valuable relationships in place with partners that you know and trust personally.
Similarly, you should prioritize being in a community that you can learn from and grow alongside.
Finally, maintaining a growth mindset will nurture ideas and move you forward in a positive direction.
At CMK Properties, we understand the significance of partnering with a trusted source for your investment and growth goals. If you would like to learn more about the diversification and tax benefits of investing in a real estate opportunity through your self-directed IRA, please contact us today.