Pre-tax money for real estate?

[Ken11]

I'll be cashing out my lump sum pension sometime over the next year.
Im thinking about diversifying beyond stocks & bonds.
I know about REITs.
However, is there a tax efficient way for an individual to use their pre-tax money to invest in individual investment/rental real estate opportunities?

I p'rolly should know the answer to this simple question- but I dont.

 

[Aiming_4_55]

Google "Self-directed IRA" and "Self-directed IRA LLC", then seek a specialist and research fees associated to the custodian.

YMMV

 

[mathjak107]

its really not a good idea. there are no depreciation allowances, no special capital gain rates, no write off of losses..

the biggest issue is you can only use the money in your ira and the rent to cover every expense.

 

[Ken11]

Thanks for the input.

Dont worry.
I dont make a move unless I understand the deal.

Ill have to look at the analysis that comprehends the set-up costs and the +/- of using pretax funds / missing out on deductions/losses under various scenarios.
I have never worked through this one.