Real estate is more than just your profession — it’s your passion.
You’ve spent your career honing your expertise to become the person your clients turn to when it’s time to buy or sell. Ready to have one more area of expertise and service that sets you apart?
Introduce them to Self-Directed IRAs (SDIRAs).
These retirement accounts allow your clients to invest in real estate and other alternative assets using their existing retirement funds. In our previous article on SDIRAs, we covered the basics of what they are, how they work, and what they could mean for your own retirement savings as an agent. Want a refresher? Check it out here.
SDIRAs can also be a valuable tool to grow your real estate business. Keep reading to learn how; Your clients and future self will thank you.
Benefits of SDIRAs for your clients
If your clients are investing in real estate, chances are they already know it can help them build a more diverse and resilient portfolio. Add a SDIRA to the equation and you’re opening the door for a number of benefits beyond those associated with a standard transaction. These include:
- A larger pool of funds to draw from, giving your clients more buying power
- Tax advantages that could allow earnings to grow tax-free
- An enhanced level of control over their financial future using a tangible asset they know and understand
- A retirement portfolio more able to endure inflation and other market fluctuations
Americans have over $35 trillion in their retirement accounts, but few use these funds to their full potential. These substantial savings may be built up in an old employer’s 401(k) or IRA, but your clients are unaware they can use them to invest in real estate. With SDIRAs, you aren’t just limited to a certain type of real estate either. From single-family homes to commercial properties, and vacant lots, the options are almost endless.
Benefits of SDIRAs for your business
SDIRAs can have enormous utility for your clients, but what’s in it for you? The answer is simple. When you understand the power of SDIRAs, you can use them to sell more properties.
As a buyer’s agent, SDIRAs can increase your clients’ investment purchasing power, ultimately netting you a better commission; or even an additional transaction. As a seller’s agent, you can inform prospective buyers and their agents about SDIRAs so they’re aware of the value hiding in their retirement accounts. Access to those funds could be exactly what they need to bridge the gap and need to complete their purchase.
No matter what side of the transaction you’re on, SDIRAs help you close more deals. This knowledge positions you as an investment property expert, making you the agent that your clients recommend to their friends. It differentiates you from the crowd and gives you extra confidence to excel when looking for new buyers to represent or properties to sell.
How to add SDIRAs to your strategy
Before integrating SDIRAs into your strategy, it’s important to have a provider on your side that you can trust. Doing so means when your clients are ready, you’ve got the behind-the-scenes support you need to give them a seamless investing experience.
At Entrust, we’ve helped agents nationwide put SDIRAs to work for their businesses for over 40 years. Along with account administration, we’re deeply focused on educating both agents and investors on how to reach their retirement goals with SDIRAs.
Want to see how it’s done and how you can get the most from SDIRAs? Download your copy of our Grow Your Business guide for agents today.