The IRS allows self-directed IRAs to buy real estate without penalties, all while keeping the tax advantages of your account. You can invest in most kinds of property — residential, commercial, raw land, or a fixer upper. With real estate in your IRA, you can earn income from rent, property appreciation, or even fix-and-flip projects. Your real estate team works with you to choose the property and negotiate the terms, ensuring you find the investment that meets your goals!
We regularly assist real estate investors in finding investments that meet their goals, including when they are purchasing an investment in their self-directed IRA. Feel free to reach out with any questions or to discuss your specific needs.
Yes, the IRS allows it, but not all custodians offer real estate as an option. You’ll need a custodian who supports alternative assets.
Yes, but it must be a non-recourse loan, meaning the lender can only seize the property if the loan defaults. These loans often require a higher down payment.
The property must be for investment purposes. You, certain family members, and plan fiduciaries cannot use it, and your IRA cannot purchase property you already own.
You are responsible for finding a property, typically with a real estate agent. The only rule is that it can’t be a property you or any disqualified person currently own.
No, you can choose any real estate agent you like.
No, you can't personally do any work, nor can disqualified persons or businesses they own. However, you can hire others to handle repairs and control the decisions.
No, as long as the property is within a tax-deferred Traditional IRA or tax-free Roth IRA. If there’s outstanding debt leverage, UBIT may apply to that portion.
Yes, after turning 59.5, you can distribute the property from your IRA and, once fully distributed, use it however you like.
There are no time restrictions for buying or selling.
Expenses must be paid from the IRA. If the IRA owns the entire property, it covers all expenses. If it shares ownership, it pays a proportional share. Be sure the IRA has enough funds to cover these costs.
The Janet Leap Team has extensive experience working with investors, including those buying in their self-directed IRAs. We look forward to supporting investors in meeting their real estate goals! Contact us with any questions!
Source: New Directions Trust Company
Regardless if you are looking for your first home, looking to move to a larger home as your family grows, downsizing, or looking to expand your portfolio by purchasing an investment property I know how to help you find the perfect real estate to meet your needs!
