Investing in Storage Facilities with your Self-Directed IRA
The law allows for your
self-directed retirement plan to own just about any kind of
real estate. As you probably already know, your IRA can invest directly in a single family or multi-unit home, apartment buildings, and improved or unimproved land. But were you aware that you can also own storage facilities?
Even though investing in storage facilities may not seem as lucrative or exciting as putting your money into a resort hotel, storage facilities can actually be very profitable with limited downside risk and lower maintenance costs than traditional types of real estate. In fact investing in storage facilities is really a passive “hands-off” investment which could be a key component of any retirement plan. The associated costs (e.g. utility , upkeep fees) other than the initial investment are fairly minimal. If you are looking to further diversify your retirement portfolio in this turbulent market and are seeking a stable investment with low operating recurring costs and minimal oversight with potentially large profit margins, why not consider deploying your IRA dollars to a storage facility?
Keep in mind however that just with any
investment inside your IRA, all profits go directly into the IRA and that all expenses come directly out of the IRA. Thus, it is critical that you make sure your IRA has enough cash reserves to pay for such expenses.
Consult with your professional advisor today and explore this option to help you make the most of your financial future and goals.
By
Munzer Ghosheh, Entrust IRA Services
mghosheh@theentrustgroup.com