The Basics of Real Estate IRAs

Self-directed retirement plans used to acquire real estate investments are commonly referred to as real estate IRAs.

Investors build wealth for retirement from rental income, rehab-and-flip projects, and profits from the sale of commercial and residential property, as well as improved and unimproved land.  Income can be garnered through other real estate-related assets such as investments in private mortgages, tax liens and deeds, offshore property, and other opportunities.

The most important things to remember when considering a real estate IRA:

  1. The property is owned by the IRA and titled in the name of the IRA.
  2. You (or any other disqualified person) are unable to receive current benefits from the investment (i.e., vacationing in a rental property owned by your IRA).
  3. Your IRA is unable to purchase property from or sell property to you or another disqualified person.
  4. All expenses and income flow directly out of and into the IRA.
  5. If your real estate IRA obtains a non-recourse loan to purchase the investment, certain taxes may apply relevant to any profit gained that was facilitated by the loan.

Advanta IRA serves clients across the nation who use self-directed real estate IRAs to control their own investment funds and decisions. Explore our real estate investing center to gain the critical knowledge you need to confidently and successfully invest your IRA funds in this realm.


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Best Practices of Investing in Real Estate with an IRA