Real Estate Syndications Make Investing in an IRA Easy for Beginners

Is your hesitation to use a self-directed IRA due to not knowing what to invest in or where to start? Real estate offers many options, but if you’re new to self-direction, you can still get stuck trying to pick an investment. Maybe you simply don’t know where to find assets and don’t have a lot of free time to research or to act quickly to invest. But, that’s why real estate syndications are attractive to many people who self-direct.

Syndications can help you build the wealth you need to retire and give you a taste ofTall coral, yellow, and brown condominiums with white trim and landscaped with tall green trees. how easy it can be to invest in real estate without involving much of your own time. They are fairly easy investments for those who have never used a self-directed IRA.

So, if investing in real estate interests you but you aren’t quite sure where to start, syndications may be a solution.

How Real Estate Syndications Work

Typically, real estate syndications involve many investors who pool funds to acquire lucrative assets—often multifamily and commercial properties. Each investor holds a piece of the overall investment.


These structures provide a great option for someone who has little to no experience finding and properly assessing investment property.

While you should perform due diligence to vet the syndication you’re considering—apart from that, there is little to no ongoing participation from passive investors. An investment sponsor for the syndication does the legwork and outlines all details of the project in the investment prospectus. Throughout the term of the syndication, the investment sponsor and management company handle the day-to-day operations of the property.

Syndications work well if you want to start investing with limited funds until you have a better understanding of investing your self-directed retirement plan.

Syndicated investments are usually structured as LLCs or LLPs and run from 3-7 years, depending on the project. The investment sponsor manages the entity, and investors are limited partners or passive members.

If you’re investing with your self-directed IRA or old 401(k), your account is the investor.

The basics

  • The investment sponsor locates and vets all investment property.
  • The sponsor creates a prospectus for potential investors to review.
  • Investors complete documentation and submit funds to participate in the investment.
  • Income is typically gained through monthly distributions of preferred returns and/or profit splits.
  • When the property is sold or re-positioned, investors generally get their initial investment back, as well as a substantial portion of the profits.

Where to find a Syndicated Investment Opportunity

  • Multifamily conferences and symposiums
  • Personal relationships and industry connections
  • Local Real Estate Investing Associations (REIAs)
  • Social media and educational podcasts
  • Attorneys who are experts in syndications
  • Reputable online real estate investing syndication platforms

You Choose Your Investments, and Advanta IRA Takes Care of the Rest

The greatest part about self-directed plans is that you don’t have to worry about the administration of your account. Advanta IRA takes care of that for you. You work one-on-one with the same account manager who ensures all paperwork is in order and that the investment process complies with IRS standards.

If you would like to discuss this process in detail, please call us at 800-425-0653. We are happy to speak with you to help you decide if self-direction is a good fit for you.

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About Scott Maurer

Scott is an attorney and a graduate of the University of Florida Law School. Scott started his career with Advanta IRA in 2006. His experience with various investment types and their unique processes makes him an invaluable asset. Scott holds the designation of Certified IRA Services Professional (CISP) and leads engaging seminars and webinars that educate the public on the intricacies of self-directed IRAs.