After 30 years of being a dentist in Florida, Vincent Dolce moved to Colorado to be closer to family. For the last five months, he has jumped in with both feet with Keller Williams Realty DTC. “I loved what I did but I always wanted to do real estate,” said Dolce, real estate professional from Keller Williams DTC, LLC.
Dolce focuses on real estate purchases that most realtors shy away from. And that is, purchasing property using your Individual Retirement Account. “Most people don’t realize that you can utilize your IRA to purchase real estate,” said Dolce. “A few years ago 1stBank started lending money to your IRA. They are the only bank in Colorado that does it.”
While many financial services firms will not allow you to invest in real estate with your IRA due to increased paperwork requirements, the IRS does not forbid such investments. You can make transfers or take loans against your 401(k) to access the funds for investment. Careful planning with either type of retirement plan can result in little or no tax ramifications.
When it comes to using IRA money for a home purchase, there’s no exemption from income taxes. So whether or not you’ll have to pay taxes on a distribution — for any reason — depends on the type of IRA you have.
According to Dolce, it doesn’t affect your personal credit when purchasing a home through an IRA. The object of this method is to purchase the home using your IRA and rent it out. Rent money is collected to pay down the mortgage.
The managing broker at Keller Williams DTC, Mark Jessop, has done over 100 of these deals. “What this man doesn’t know about numbers, nobody knows,” said Dolce. “He’s brilliant and such a resource.”
Dolce, who lives in Glendale, made joining the Chamber one of his first orders of business. “I live here and I figure this is my community so I want to get to know people in the community,” said Dolce.
The funds in your IRA are tax deferred. If you buy real estate with an IRA improperly, you can disqualify the IRA, which makes all of your funds taxable. This would be an expensive mistake. Always check with a tax professional and financial advisor before making any such endeavor.
“This makes so much sense,” said Dolce. “The question isn’t why would you do it, it’s why wouldn’t you do it? “
Keller Williams Realty DTC is located at 6300 S. Syracuse Way, Suite 150, Englewood, CO 80111. The offices have 31,000 square feet of office space complete with a media room. The Agents at their office speak more than 15 languages including Amharic, Ukranian and Hebrew. Visit their website at www.kw-dtc.com or call 303- 771-7500. To reach Vincent Dolce directly, call 303-305-1984.