Start a Real Estate IRA

You have heard about real estate IRAs, but you have questions about the process. This page will take you step-by-step to help you understand the process from beginning to end.

IRA Guide Step 1

Step 1: Open an Account

The first step in the real estate IRA purchase process is to complete an application and open a Self Directed account. Select from Traditional IRA, Roth IRA, SIMPLE, SEP, Individual(k), HSA or Coverdell. It will take four business days, after New Direction has received completed paperwork, to open an account.

 

 

 

IRA Guide Step 2

Step 2: Fund the Account

The second step in the Real Estate IRA purchase process is to fund your Self-Directed IRA account. Make a contribution and/or transfer or rollover funds from existing IRA or 401(k).

 

 

 

Real Estate IRA Guide Step 3 - Find Investment Property

Step 3: Find Investment Property

The third step in the real estate IRA purchase process is to find an investment property. There are several types of real estate to purchase in an IRA. Furthermore, there are no limitations on the ‘type’ of real estate you wish to purchase with your IRA.

 

 

 

Real Estate IRA Guide Step 4 - Write a Contract

Step 4: Make an Offer and Write a Contract

The forth step in the real estate IRA purchase process is to make an offer and write a contract in the name of your IRA.

 

 

 

Real Estate IRA Guide Step 5 - Pay Escrow/Earnest Money

Step 5: Pay Escrow/Earnest Money

The fifth step in the real estate IRA purchase process is to pay escrow or earnest money. New Direction does not send earnest money with an offer, but rather with an accepted contract.

 

 

 

Real Estate IRA Guide Step 6 - Investment Closing

Step 6: Investment Closing

The sixth step in a real estate IRA purchase is the investment closing. The IRS has established strict guidelines governing real estate transactions, and it is New Direction’s job to make sure that all rules are observed.

 

 

 

Real Estate IRA guide step 7

Step 7: Own Real Estate in Your IRA

The seventh step in the real estate IRA purchase process is owning the real estate in your IRA. Please contact New Direction’s Client Relations department with questions.

 

*This flowchart is an overview of the process. Do NOT attempt to purchase any investment prior to communicating with our transaction department as paperwork mistakes could lead to substantial taxes and penalties and may not be possible to correct.