Purchasing Real Estate in IRAs

How Do I Purchase Real Estate in an IRA?

This is one of the most common questions that Equity Trust receives.

Purchasing real estate in your IRA isn't much different from a normal purchase of an investment property. There are a few exceptions, but this is the basic process:

1. Open an account at Equity Trust, and fund the account through a contribution, transfer, or rollover.
2. Identify the investment property—make sure you follow self directed IRA rules.
3. Complete the necessary paper work from Equity Trust.
4. Check that correct titles are on all documents—e.g., “Equity Trust Company Custodian FBO [Your Name] IRA.”
5. Ensure that all payments made to and expenses paid from the investment go through the IRA.

When you're ready to sell the property, Equity Trust provides the necessary paperwork and works with you and your title company/closing attorney to complete the transaction. All proceeds from the sale are tax free and go back into your IRA.