Learn the secret to investing in real estate with IRA tax advantages
Surprising account types that can buy real estate
Five most valuable investment tips for self-directed IRAs
Straight talk about the types of real estate your IRA can buy
Four powerful strategies for IRAs that have a small cash balance
Use IRS rules to limit the taxes you pay
Free your retirement account from Wall Street volatility
Learn little-known distribution strategies and considerations, and more!
Real Estate is a hard asset that lies outside of the stock market and brings balance and diversity to your retirement portfolio.
Combine your retirement account tax advantages with real estate returns.
Put your knowledge and experience in real estate to work for the benefit of your IRA’s growth.
Using an IRA to invest in real estate provides the opportunity to generate income from rent, appreciation, fixing and flipping, and more. Your self-directed IRA can purchase any type of property such as residential and commercial real estate, raw land, agricultural property, and more. Your self-directed IRA can buy the property outright; meaning the IRA is the title holder. If your IRA does not have the funds to finance the full purchase price, your IRA can partner with another person, company/entity, or another IRA account. Your IRA can also secure a non-recourse loan (see below) to buy property.
Since the inception of IRAs, it has been possible to invest in real estate as an asset. What has not always been easy is finding an IRA provider willing to service self-directed IRA real estate investing.
The IRS requires an authorized IRA provider for all IRAs. Although few IRA providers handle real estate investments, New Direction IRA specializes in administrative services for all your self-directed IRA real estate IRA investments. You, the IRA holder, select the property, negotiate the terms, and direct us to send funds from your IRA to close the deal. We make sure the paperwork substantiates that the asset is purchased with your IRA, and therefore deserves the tax benefits associated with the account type.
Our knowledgeable staff will guide you through the self-directed IRA real estate investment process, and ensure that your transactions are prompt and accurate. We offer ongoing free education on self-directed IRA real estate investing and regulations.
A self-directed IRA real estate may acquire a loan to purchase property, but it must be a non-recourse loan (the lender is acknowledging, in the case of default, their only avenue for renumeration is the property itself). Not all lending institutions and banks offer these types of loans, but several do exist. Also, a non-recourse loan can come from a private lender.
When an IRA purchases real estate using a non-recourse loan, the debt financed portion of the property's net profits may be subject to UBIT. Similarly, if an IRA-owned property is sold while a percentage of ownership is still debt financed, the net profits derived from the debt financed percentage may be subject to UBIT. UBIT is paid by the real estate IRA and does not affect the IRA holder's personal taxes. Learn more.
After you have used your self-directed IRA to purchase real estate, the IRA holder makes the management decisions. That may include the hiring of a property manager (or other non-disqualified person or entity) to handle the day-to-day cash flow and operations, or you may choose to work directly with New Direction to have vendors and other bills paid. You are allowed to make decisions for your IRA-held asset, but there are limitations that the IRS imposes.