Investing with your Retirement Account on the Green Lock Platform
Sponsors on the Green Lock Platform may provide investors with the option to use their retirement funds in a Self-Directed IRA (SDIRA) or Checkbook Controlled IRA to invest directly into institutional-quality commercial real estate offerings.
What are the different types of retirement accounts?
A Self-Directed IRA (SDIRA) is a distinct category of retirement account in which you maintain total control over and responsibility for the investments in your account. This type of IRA allows you both greater control over managing your investments and potentially more freedom in the types of investments you can make than most conventional IRAs offer, including the ability to invest in real estate.
There are two different types of Self-Directed IRAs: the custodian-controlled SDIRA and the self-directed IRA LLC or Trust with Checkbook control.
To learn more about the differences between these two types of SDIRAs, visit IRA Financial’s article on this topic: Custodian Controlled vs. Checkbook Control – IRA Financial Group. In addition, self-employed individuals with no full-time employees may have the opportunity to create a solo 401(k).
Potential Benefits of Investing in Real Estate with your SDIRA Account
Sponsors offer investors the ability to use their retirement funds in a Self-Directed IRA (SDIRA) account to invest directly into institutional-quality commercial real estate offerings.
Commercial real estate
Tax Advantage
Potentially Generate Income
Potential Pitfalls of Investing in Real Estate with your SDIRA Account
Risk: Real estate investments are speculative and involve substantial risk. A loss of part or all of the principal value of a real estate investment may occur.
Liquidity: Real estate investments are typically highly illiquid and are designed as long-term investments, and investors bear the economic risk of an investment for an indefinite period of time.
Inability to receive investment advice: SDIRAs are self-directed, and custodians are not permitted to give investment advice. The purpose of the SDIRA is to give investors complete control over their retirement accounts rather than to provide investment advice
Paperwork, fees and complications: Investments in real estate and the use of SDIRAs often include additional fees and IRS requirements that may not be required in more traditional retirement options. It is important to do your homework to ensure you understand the fees being charged and avoid unnecessary expenses and be well-versed in the IRS guidelines to avoid the risk of any tax penalties