How Cleveland Realtors Can Invest in Real Estate for Retirement: A Tax-Deferred Wealth Strategy

If you are a Realtor, understanding real estate investment as a tool for retirement planning can be a game-changer. Mike Ferrante, Team Leader of the 21 Mike Team at Century 21 HomeStar, joined by Tony Geraci, Broker/Owner of Century 21 HomeStar, recently broke down how real estate investment through self-directed retirement accounts can build long-term wealth while offering powerful tax advantages.

True or False: Can You Use Real Estate for Retirement Investing, Tax-Deferred?

TRUE. Most agents and consumers alike are unaware that you can use funds from an IRA or other retirement accounts to invest in real estate, gaining appreciation and income tax-deferred or even tax-free depending on the account type. This strategy is gaining popularity as many investors grow tired of stock market volatility and seek greater control over their portfolios.

“You are in the driver’s seat with real estate,” says Mike Ferrante. “Unlike stocks, where you ride the market, real estate gives you control over what you buy, where, and how it is managed.”

Why Real Estate is a Smart Retirement Vehicle

Over 90% of millionaires have real estate in their portfolios. Why? Because it provides:

Cash Flow through rental income
Appreciation of asset value over time
Tax Benefits like depreciation
Leverage via financing
Diversification from stocks and bonds

Tony Geraci points out, “Real estate is one of the most accessible businesses you can get into—whether you’re buying your first duplex or growing a portfolio, it is a proven path to wealth.”

What is a Self-Directed IRA (SDIRA)?

A Self-Directed IRA is a retirement account that allows you to invest in non-traditional assets like real estate, private lending, or businesses—all while maintaining the tax-deferred or tax-free status of the retirement account.

Here is how it works:

You move funds from a traditional IRA, Roth IRA, or 401(k) into a self-directed IRA account.
That account can be used to purchase real estate, fund deals, or invest in properties—all from a separate LLC with checkbook control.
Income generated inside the IRA (rent or flip profits) stays in the account tax-deferred.

“I use my SDIRA to do both flips and long-term rentals,” says Mike. “I’m getting 20–40% annual returns—and the best part is I don’t pay taxes on that until I take distributions.”

Best Practices for Realtors and Their Clients

Whether you are planning your own retirement or helping clients grow their wealth, understanding this investment tool is key. Mike and Tony recommend the following:

Partner with a tax advisor or SDIRA custodian to stay compliant
Educate clients about the potential of SDIRAs
Create educational video content to attract investor leads
Use ChatGPT or AI tools to generate content ideas and client outreach

As Tony reminds us, “You don’t need millions. One investor with one property a year is two sales. Get ten clients doing this and you are at 20+ deals annually.”

Bonus Tip: 1031 Exchange for Non-Retirement Tax Deferral

Another powerful tool is the 1031 Exchange, which allows you to defer capital gains taxes when selling one investment property and buying another. Mike and Tony will be covering that in an upcoming session—stay tuned.

Final Thoughts: Be the Expert, Provide Value

The bottom line: knowledge creates opportunity. By learning and teaching clients how to invest tax-deferred through real estate, you position yourself as a real estate wealth advisor—not just a sales agent.

Now is the time to stand out in the Cleveland market. Create videos, hold workshops, or record podcasts. Whether it is your own retirement or your client’s, real estate can build lasting wealth.

Your future is not in the stock ticker—it is in the bricks and mortar you choose today.

Want to Learn More About Investing in Real Estate for Retirement?

Visit 21Mike.com and click “Schedule Appointment”
Email Mike at mike@21mike.com
Connect with Tony Geraci at talk2tony.net

For more great Real Estate content:

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True or False – You Can Invest in Real Estate Tax Deferred as Part of Your Retirement Plan?