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Strike While the Iron is Hot: 4 Tips to Successfully Invest in Real Estate


Right now, low housing prices and rock-bottom interest rates make this the ideal time to buy an investment property- perhaps the best time we’ll see in our lifetimes.

The real estate market is finally showing signs of recovery, with home prices growing in some areas and stabilizing in others, and the influx of homes on the market leveling off- meaning now is the time, before the opportunity passes.

Most people come to us unsure of how to start investing in real estate. Most of our clients own a home, maybe even a vacation home, too, but they’re unsure of where to begin as an investor. At iPlanGroup, we have the experience and passion to help our clients make the best decisions about what investing strategies are best for them given their goals and plans. These tips have proven successful for many of our clients as they start to grow their retirement portfolio with this potentially lucrative alternative asset class.

1. Learn all about the different real estate investment options you have. Not all investment properties were created equal. For instance, there’s a major difference between commercial real estate and residential real estate. You can also purchase land to be developed. You can be a landlord or fix and flip properties to grow your portfolio value. Each of these investment options has different IRS regulations and requires specific, but different, attention and skill sets.

2. Know all the people involved in the investing process. This process isn’t just between you and a realtor, as it might have been when you bought your home. Investing in real estate for your retirement portfolio requires that a few more people become involved! In addition to the parties involved in most home sales processes, including you, the realtor, the mortgage company and your bank, you need to find an Administrator for your self-directed IRA. Your Administrator will help you complete the paperwork to enable you to include your real estate investment in your retirement account. You may want to speak to an accountant or financial planner about the implications of your investment on your finances, too. Finally, some people also hire a property manager to oversee the property, as well as repair staff to address specific issues tenants have.

3. Location, location, location! If you’re interested in acting as a landlord and renting out your property, or developing property for a specific purpose, be mindful of the location in which you’re looking. Take into account factors such as schools, crime rate and even walkability to shops, restaurants and other attractive amenities. The more attractive the location, the more attractive the property to a potential tenant.

4. Do your due diligence. Did you know that the IRS has very, very stringent protocols and requirements when it comes to real estate investing for your self-directed IRA? While we at iPlanGroup are always happy to act as a guide, it is essential that you know the in’s and out’s of real estate investing so it’s smooth sailing (and high returns) once you buy your first property!

We want to hear your other questions about real estate investing for retirement- call us at 1-855-60i-PLAN.