Real Estate IRA

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.