How to Use Your IRA to Invest in Real Estate: Tips and Insights from a Real Estate Broker

How to Use Your IRA to Invest in Real Estate: Tips and Insights from a Real Estate Broker

Are you looking to diversify your retirement portfolio beyond traditional stocks and bonds? Investing in real estate through a Self-Directed IRA (SDIRA) might be a great option for you. As a real estate broker, I have seen many investors take advantage of this strategy. In this article, I'll share some insights and tips on how you can use your IRA to buy real estate.

Find a Custodian

The first step in investing in real estate through an SDIRA is to find a custodian who allows investments in real estate. Not all custodians offer this service, so you'll need to do some research to find the right one. Some popular options include Equity Trust and New Direction Trust Company.

Understand the Rules

Investing in real estate through an SDIRA comes with some rules and restrictions. For example, you cannot use the property for personal use or live in it yourself. The property must be held as an investment in the IRA. Additionally, all expenses associated with the property must be paid from the IRA, including property taxes, insurance, and repairs.

Consider the Expenses

Buying real estate through an IRA can come with additional expenses. For example, the custodian may charge fees for managing the account, and there may be legal fees associated with the transaction. It's essential to consider these expenses before making a purchase to ensure that the investment is worth it.

Choose the Right Property

When it comes to investing in real estate through an IRA, choosing the right property is crucial. You'll want to look for a property that is likely to appreciate in value and generate rental income. Additionally, you'll want to ensure that the property is a good fit for your IRA's investment strategy.

Get Professional Help

Investing in real estate through an IRA can be complicated, so it's essential to seek professional help. A real estate broker can help you find the right property, and an attorney can help you navigate the legal aspects of the transaction.


Investing in real estate through an SDIRA can be an excellent way to diversify your retirement portfolio. However, it's crucial to understand the rules and restrictions before making a purchase. By finding the right custodian, understanding the expenses, choosing the right property, and seeking professional help, you can use your IRA to invest in real estate successfully.


Disclaimer: The information provided in this article is for educational purposes only and is not intended as legal or financial advice. It is important to consult with a qualified professional, such as an attorney or financial advisor, before making any investment decisions. While we strive to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the information contained in this article. Any reliance you place on such information is strictly at your own risk.


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