CAN YOU BUY REAL ESTATE WITH AN IRA?
Yes, you can. And these accounts are commonly called real estate IRAs. Historically, property presents great diversity and a good hedge against stock market volatility. A real estate IRA is the most popular strategy of our clients who build critical retirement income investing in residential and commercial property, rentals, rehabs, multifamily homes, and more.
Watch the video below to learn how these accounts work. Scroll down to easily find information like borrowing funds to invest, IRS rules, different types of assets, and how to partner funds to invest.
This 45-second video explains
how to buy real estate in your IRA to
earn tax-advantaged income and
build the retirement income you desire.
Learn More
Investments
Invest in commercial and residential property, raw land, rentals, renovation projects, tax liens, private mortgages, and more.
IRA LLC
These accounts give you checkbook control so you can write checks from directly from your retirement funds to invest.
Partnering Funds
To invest with limited funds or split costs, your plan can partner with your personal funds, another person, and/or entity to invest.
Non-Recourse Loans
Your plan can borrow money using a non-recourse loan to help finance the purchase of an asset.
Rules & Regulations
Protect the tax-sheltered status of your plan by understanding the rules and regulations set forth by the IRS.
FAQs
Answers to many of your questions about these and other self-directed accounts can be found here.
Advantages of Investing in Real Estate with an IRA
Diversity in your portfolio
Conventional retirement plans permit only approved stocks, bonds, and mutual funds as holdings. But, when you use your IRA to buy real estate, you create diversity in your retirement portfolio. You can invest in tangible assets—land, houses, commercial buildings—that don’t lose value overnight. These types of investments have the potential to earn income even when the stock market is volatile since real estate typically holds value in any economy.
For example, if you have a successful multifamily property in a good location with multiple tenants—you can expect consistent, monthly income from that asset regardless of how the markets perform. Everyone needs housing. You may have a few vacancies from time to time, but you’ll continue making income in your IRA on the other units. You can also use your IRA to buy land to sell at a later date to reap the potential appreciation on that property.
Financial success for you and your family
Income grows in retirement accounts on a tax-sheltered basis. For example, in a Roth IRA, all earnings grow in the account tax free. Traditional IRAs offer tax-deferred earnings. Even capital gains from the sale of a property enjoys tax-sheltered growth, providing more money to invest. This growth helps secure your retirement future and can create additional tax-advantaged income for family members who inherit your account.
Options for every investor
You don’t have to be a savvy real estate investor to navigate real estate investing. There are suitable options for both sophisticated and beginner investors—from expensive commercial property to less-costly tax liens and deeds or private mortgage lending. The key is to draw on your own knowledge and expertise. Real estate professionals can use their experience to find investment property. Building contractors, mortgage lenders, and people who already invest with personal funds can use their expertise to purchase real estate in their IRAs. You can also learn how to use real estate as an IRA investment fairly quickly and draw on the experience of professionals for help.
Learn how to avoid risk as a real estate investor.
