Mobile Homes

You can invest in almost anything with a truly self-directed IRA, including mobile homes.

Mobile Home Real Estate Investing QuickStart Guide

Mobile Homes Investing FAQ’s

• Where will the home be located?
• I plan on purchasing a property with my IRA that will generate rental income. Does the rental income have to go back to my IRA?
• May I live or work in a property that my IRA owns (e.g., personal residence, retirement home, office)?
• Can my IRA purchase real estate that I own presently?
• What if I do not have sufficient funds in my IRA to purchase a property outright?
• Can my IRA purchase real estate that my corporation, partnership, or LLC owns?
• How do I sell a property owned by my IRA?
• When I sell a property owned by my IRA, may I keep a portion and send the remaining portion to Equity Trust?

Where will the home be located?

The mobile home may not be located on your property or any disqualified individual’s property. It can also not be located at a mobile home park that you or a disqualified individual owns. Disqualified individuals include you and family members of linear descent (grandmother/grandfather, mother/father and son/daughter).

I plan on purchasing a property with my IRA that will generate rental income. Does the rental income have to go back to my IRA?

Yes. All income generated by a property owned by your IRA must return to your IRA to retain the tax-deferred or tax-free status of the investment.

May I live or work in a property that my IRA owns (e.g., personal residence, retirement home, office)?

No. This is considered a prohibited transaction.

Can my IRA purchase real estate that I own presently?

No. This is considered a prohibited transaction. You may not purchase a property or interest in a property which is presently owned by a disqualified person. Disqualified persons would include yourself and family members of lineal descent (grandmother/grandfather, mother/father and son/daughter).

What if I do not have sufficient funds in my IRA to purchase a property outright?

If you do not have available funds to purchase outright, you have options. You can purchase an interest in the property by partnering with other investors or you can get a loan.

But any use of a loan (debt financing) might incur unrelated business income tax (UBIT). Debt financing must be in the form of a non-recourse loan, which means if your IRA fails to make payments, the lending institution can come after the property itself and not the IRA.

Can my IRA purchase real estate that my corporation, partnership, or LLC owns?

No. This is also a prohibited transaction.

How do I sell a property owned by my IRA?

You will need to complete a Sale Direction of Investment form from Equity Trust. Once the property has been sold, all funds from the sale must be remitted directly to Equity Trust for the benefit of your IRA. This ensures maintenance of the tax-free or tax-deferred environment.

When I sell a property owned by my IRA, may I keep a portion and send the remaining portion to Equity Trust?

No. All income generated from the sale of a property owned by your IRA must return directly to your IRA.