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Real Estate IRAs

Real Estate Investing Within a Self-Directed IRA

Historically, real estate has given many Americans with a stable investment vehicle that offers both income and appreciation. One of the greatest tools available to real estate investors is the self-directed IRA, – a government-sponsored retirement plan that allows real property investments.

Most investors believe that their only IRA investment options are bank CDs, the stock market, and mutual funds.
Few Americans realize that they have the option to self-direct their IRAs and other retirement plans into real estate—and that they can benefit from the tax advantages those plans provide.

IRA investments earn tax-deferred/tax-free profits. Imagine not having to pay taxes right away—or ever—on your real estate deals. Instead of paying 25, or 30, or even 50 percent of your profits to the government in taxes, you keep it.

What is a Real Estate IRA?

A self-directed real estate IRA is technically no different than any other IRA (or 401k). The government created the IRA to allow investments to grow tax-free or tax-deferred compounded over time to maximize growth. The IRA can also qualify for yearly tax-deductions (depending on the account), provide asset protection and assets can be passed to future generations.

A self-directed real estate IRA is unique because it allows investments in real property.

Claim Your Self-Directed Real Estate 101 Guide

This Real Estate 101 Guide Will Uncover:

The step-by-step process to getting started

Your real estate investment options

How to sell your investment in your IRA

Much more

Access Guide

IRA Real Estate Investing:
How to Get Started

Equity Trust enables you to easily invest in real estate using your self-directed IRA or other account, tax-deferred or tax-free.

Here’s what you need to know to reap the benefits of this powerful investment type in your self-directed account:

Open an Equity Trust Account

One of our specialized counselors will walk you through the process, or you can do it online with myEQUITY.

Find an Investment Opportunity

A few potential sources:

Real estate listings
Other investors
Acquaintances
Investment District

Decide How You Will Fund the Investment

Possibilities include:

Purchasing outright with your retirement account
Partnering account money with another source
Leveraging with non-recourse loan

Direct Equity Trust to Fund Your Investment

Easily initiate your investment with the Real Estate Wizard in myEQUITY.

Our liaisons are here to help you if you need it.

Investing in Real Estate with Your Retirement Account

Real Estate IRA FAQs

Can my IRA purchase real estate that I currently own?

No. This is considered a prohibited transaction (see IRC 4975). You may not purchase a property, or interest in a property, that’s currently owned by a disqualified person, which includes yourself.

Am I restricted to only purchasing residential property with my IRA?

You are not limited to residential real estate. Your IRA can hold various investment properties such as commercial buildings, vacant land, condominiums, mobile homes and apartment buildings, in addition to residential property.

Can my IRA invest in a newly formed entity that will invest in real estate?

Yes. Investments in newly formed private entities, such as limited partnerships, limited liability companies, C corporations or land trusts, are permissible under the Internal Revenue Code, with the exceptions of subchapter S corporations.

SEE MORE REAL ESTATE IRA FAQS

Resources

Let’s talk about your financial future.

Schedule a one-on-one session with an expert alternative investment counselor. We’re here to answer any questions, help guide you through the process, and provide more detailed information and education specific to your journey.

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Equity Trust Company is a directed custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust Company is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional. Equity Institutional services institutional clients of Equity Trust Company. Brokerage Services Available Through ETC Brokerage Services, Member SIPC, and FINRA. *Founded in 1974 | Self-Directed IRA Custodian since 1983. The predecessor business to Equity Trust Company was established in 1974 and the IRS approved as a custodian in 1983. **Assets under custody and administration as of 1/1/2024. ¹ici.org, total assets in IRAs as of 12/2023

You are leaving trustetc.com to enter the ETC Brokerage Services (Member FINRA/SIPC) website (etcbrokerage.com), the registered broker-dealer affiliate of Equity Trust Company. ETC Brokerage Services provides access to brokerage and investment products which ARE NOT FDIC insured. ETC Brokerage does not provide investment advice or recommendations as to any investment. All investments are selected and made solely by self-directed account owners.

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