Invest in Real Estate With a Self-Directed IRA
Buy investment property inside an IRA or Solo 401(k) while following IRS rules for self-directed accounts—so rental income and gains can grow tax-advantaged.
Real estate IRAs have strict rules (personal use, disqualified persons, expense/income handling). We help you set up the account structure and process transactions correctly.
As seen in:
How Real Estate Investing in an IRA Works
Buying property with retirement funds requires a self-directed account. Your IRA (or IRA-owned LLC via checkbook control) is the buyer, and all property income and expenses must flow through the retirement account.
What stays inside the IRA: rent, proceeds from sale, refunds/credits.
What must be paid from the IRA: taxes, insurance, HOA, repairs, utilities (if landlord-paid), property management, closing costs.
IRS Rules You Must Follow When Investing in Real Estate With an IRA
Prohibited Transactions & Disqualified Persons: IRS Rules to Know:
- No personal use (you or family can’t live in or vacation in the property).
- No “disqualified persons” transactions (you, spouse, parents, children, and certain related entities).
- No mixing personal funds (all expenses must be paid from the IRA; no reimbursing yourself).
- Arms-length management (you generally can’t perform “sweat equity” improvements yourself).
Why IRA Financial for Real Estate IRAs
Not all IRA custodians understand the compliance and execution challenges of real estate investing inside a retirement account. IRA Financial specializes exclusively in Self-Directed retirement solutions.
Help avoiding prohibited transactions and IRS violations.
No commissions or asset-based pricing.
Structures available for hands-on or custodian-managed investing.
Serving investors in all 50 states.
Real Estate IRA Fees That Keep Costs Low
Many providers charge asset-based fees that increase as your real estate appreciates. Over time, these fees can significantly reduce rental income and long-term returns. IRA Financial uses a flat-fee pricing model designed for real estate investors who hold property long term. Your fees remain predictable regardless of property value or appreciation.
Self-Directed IRA
$495
/ annually
A custodian controlled Self-Directed IRA allows one to invest in alternative investments, including real estate. You choose the investments, and we’ll invest on your behalf. Ideal for investors who are less hands-on.
- Free setup fee
- Best value self-directed solution
- Invest in almost anything you want
- Use a traditional, Roth, SEP or SIMPLE IRA, ESA or, HSA
- No transaction or asset value fees
Checkbook IRA
$495
/ annually
A Checkbook IRA gives you total control with the use of an LLC. Perfect for the investor that performs a lot of transactions, such as with a rental property.
- $999 setup fee
- Ultimate freedom and privacy
- Invest in almost anything you want
- Use a traditional, Roth, SEP or SIMPLE IRA, ESA or HSA
- No transaction or asset value fees
Solo 401(k)
$399
/ annually
If you have self-employment income, the Solo 401(k) is the best way to invest in real estate with retirement funds. Unlike IRAs, 401(k) plans are exempt from UBTI, a tax for investors using leverage to invest in real estate.
- $999 setup fee
- No asset, transaction, or purchase fees — ever
- Free tax consulting, plan documents, Form 5500-EZ filing, and IRS audit protection
- Borrow up to $50,000 tax-free
How to Start Investing in Real Estate for Retirement
Once you choose your investment property, you can open your account, fund it, and prepare to make an offer.
01
Open Your Account
Choose the right self-directed structure. Select a Self-Directed IRA, Checkbook IRA, or Solo 401(k) based on your investing needs.
02
Get your account number
Once your account is reviewed and approved, you’ll receive your account number and gain full access to our online retirement platform.
03
Fund your account
Transfer or rollover funds from an existing retirement account or fund your account through a direct contribution. Once funded, you’ll be able to make your investments and start growing your wealth.
04
Execute the purchase
Submit earnest money, close on the property, and begin managing income and expenses through your retirement account.
When Speed and Control Matter: Checkbook IRA for Real Estate
Real estate investing often requires fast access to funds for earnest money, repairs, and time-sensitive expenses. A Checkbook IRA allows your IRA-owned LLC to maintain a dedicated bank account for real-time transactions.
This investment structure is often used by investors managing active rental properties or frequent transactions.
The Benefits of Investing in Real Estate with Retirement Funds
Better tax advantages
In general, all income and gains from a real estate investment will be tax-deferred (or tax-free in the case of a Roth.)
Inflation Protection
Having the ability to invest in certain hard assets, such as real estate, is viewed as a good way to protect your retirement account from inflation since real estate is a hard asset and rental income can generally be adjusted annually to take into account an increase in inflation.
No UBTI Tax
Investing in real estate with a 401(k) plan has an added benefit – there is no tax when using leverage to purchase real estate.
Faster Transactions
Move quickly on deals with checkbook control and simplified processes, reducing the risk of missing time-sensitive opportunities.
Built in Asset Protection
Hold real estate inside a retirement account to reduce personal liability and isolate risk, while preserving your long-term financial security.
Custodial support
Your IRA custodian handles purchase logistics, IRS compliance, and secure storage setup, so you can focus on managing your overall retirement strategy.
What Real Estate investments can I make with a Self-Directed IRA?
Most Americans savings are tied to the stock market. Investing in alternative assets like real estate offers your retirement accounts a great way to diversify from the equity markets and gain access to a hard asset that can offer steady cash flow and asset appreciation. Below is a partial list of domestic or foreign real estate-related investments you can make with a Self-Directed retirement account:
Book a Consultation
Schedule a free consultation with a member of our team to explore how opening a self-directed retirement account can unlock your ability to invest tax-free in a variety of alternative assets.
Real Estate IRA FAQs
Answers to some of the most common questions about using a Self-Directed IRA to invest in real estate. You can check out our full list of FAQs here.
Yes. A Self-Directed IRA can purchase rental property as long as the investment follows IRS rules. The property must be owned by the IRA, all income must return to the IRA, and all expenses must be paid from IRA funds.
No. Personal use of IRA-owned real estate is prohibited. You, your family members, and other disqualified persons cannot live in, vacation in, or benefit from the property.
Disqualified persons include you, your spouse, parents, grandparents, children, grandchildren, and certain entities you control. Transactions with disqualified persons are not permitted.
All expenses must be paid directly from the IRA or IRA-owned LLC. You cannot pay expenses personally and reimburse yourself later.
Yes, but only a non-recourse loan is permitted. The loan must be secured solely by the property, and you cannot personally guarantee it. Special tax rules may apply when leverage is used.
A Checkbook IRA may be helpful if you need fast access to funds, expect frequent transactions, or manage active rental properties. IRA Financial can help you determine the best structure.
Yes. Your IRA can partner with other IRAs, individuals, or entities, provided the structure follows IRS rules and all parties remain compliant.
See What Our Clients Have to Say
I decided to open a Self-Directed IRA because I wanted to invest in real estate projects. Also, having control of my money was a big motivating factor as well. Being able to decide where and when to invest has been very successful for me. All the real estate projects I have selected have been solid investments. I have recommended IRA Financial to friends and family.
I researched several companies before deciding to go with IRA Financial. I am completely happy with my choice. I appreciate that I can ask questions about rules prior to making an investment to make sure I am compliant. I like that I can invest in traditional investments, but also real estate. I have invested in land, rentals, and home flips. Whenever I am speaking with self-employed individuals, I bring up IRA Financial and the idea of opening a Solo 401(k). I think it is a no-brainer for someone who is self-employed and wish I had opened mine up sooner.
I've looked at all of the participants in this space and IRA Financial was the clear choice. They were the easiest to work with, answered all my questions and concerns prior to me taking the steps to open the account. The process is straight forward and there are no surprises. My investments in Real Estate have been largely successful. IRA Financial is professional, has great support, and put the customer in the driver's seat.
Ready to Invest in Your Future?
Whatever strategy you plan for retirement, we do it all. Build your retirement with a Self‑Directed IRA designed for alternative and non traditional investments.
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