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What is a real estate IRA?

"Real estate IRA" is a term used to describe a real estate investment(s) in a self-directed IRA or 401(k).

With a real estate IRA, you can earn tax-free/tax-deferred returns on your real estate investments.

What types of real estate IRA investments are allowed?

The following is a partial list:

  • Raw land
  • Single-family homes
  • Commercial property
  • Apartments
  • Duplexes
  • Condos/townhomes
  • Mobile homes
  • Real estate notes
  • Second mortgages
  • Partial notes
  • Real estate purchase options
  • Tax liens certificates

What investments are not allowed?

The following rules govern investments in a real estate IRA:

  • Your IRA Cannot Purchase Property Owned by You or a Disqualified Person
  • You Cannot Put Any of Your Own Money Into the Deal
  • You Cannot Have "Indirect Benefits" from Property Owned by Your Self-Directed IRA
  • Real Estate IRA Investments Are Uniquely Titled
  • IRA Investments that Use Financing Must Pay UBIT
  • Real Estate IRA Expenses Must Be Paid from Your IRA
  • Real Estate IRA Income Must Return to Your IRA

For more information, see IRA Rules.




Fraud Awareness

Here are some helpful resources:

800 732 0330 The Securities and Exchange Commission (SEC) is dedicated to helping Americans protect their investments.

202 737 0900 The North American Securities Administrators’ Association (NASAA) provides information on investor education.

301 590 6500 The Financial Industry Regulatory Authority (FINRA) has an “Investor” section on Smart Investing.

888 687 2277 American Association of Retired Persons (AARP) includes a section on scams, fraud and consumer protection.