Book Review: “IRA Wealth: Revolutionary IRA Strategies for Real Estate Investment,” by Patrick Rice

Book Review: “IRA Wealth: Revolutionary IRA Strategies for Real Estate Investment,” by Patrick Rice

The book “IRA Wealth: Revolutionary IRA Strategies for Real Estate Investment” by Patrick W. Rice with Jennifer Dirks provides novices to the topic of self directed IRAs with a decent introduction for guidance on this unknown topic.  For experienced self directed IRA investors however, this book might not be the best use of their time.

If you never heard of self directed IRAs, and real estate investing is completely foreign to you, then you will find this book very helpful. Much of the book discusses simple retirement math, like how it’s a good idea to take advantage of tax-free compounded returns on your investments. Good suggestion, but any experienced investor should know this already. If you don’t, then there’s something in this book for you.  For self directed IRAs, this book rightly suggests a nice framework of professionals you will need to support you, like a financial planner, a CPA, an attorney, a real estate broker, a mortgage broker, title insurance agent and (the most critical outside expert for a self directed IRA), the IRA administrator (custodian). What the book could’ve done a better job explaining is just how much these experts will cost.

The book argues that a traditional brokerage IRA costs 3-6% a year in fees. We tend to think that “3-6%” amount is overstated, but to be sure there are costs with traditional IRAs, so know that going in.  For “newbies,” I thought that the book did a good job especially in Chapter 4, explaining UBTI and the calculation of this obscure tax. For investors unfamiliar with buying real estate, the book’s basic explanation of the purchase process (eg, written offer, negotiation period, offer acceptance, contract/purchase agreement, inspections, closing) will be helpful. On the other hand, experienced real estate investors will find this book covering ground they know well.

Bottom line: beginner level book. Good for those new to self directed IRAs and real estate investing. Self directed IRA experts and experienced real estate investors should look at other books to advance their expertise.

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