Using your self-Directed IRA to Invest in Property

Real Estate Agent with Pendulum Properties, LLC AL 84773

Every investment counselor and broker would tell you that your IRA should contain a diversified portfolio of stocks, bonds, CDs, mutual funds, and other traditional investment products.  Yet, they will ignore one of the best investments you could ever have:  real estate.  There are two major reasons they do not share this lucrative and, in many cases, relatively safe investment concept with you.  First, if you invest a portion of your IRA in real estate, that would be funds beyond the reach of them earning commissions on the purchases, sales, or trades they make on your behalf!  Second, many brokers and investment counselors simply just don't know that you are allowed to invest in anything other than traditional investment products.  The result is that less than one percent of IRA accounts actually hold real estate as part of their portfolio. 

 Here are a few facts you should know about using your IRA to invest in property:

You may own land, homes, commercial properties, rental properties, notes, and many other types of real estate products in your IRA:

Your can invest in property if you have a traditional IRA, Roth, Education IRA, Keogh plan, Simple or SEP but each works a little differently

  • Your investment must be "arm's length" and you cannot commingle personal funds with your IRA funds and you cannot do business with certain family members
  • You can join into LLC partnerships to further leverage your IRA funds
  • You can buy your retirement home or property now in your IRA and let your IRA pay all associated costs of ownership and then  "cash it out" later for your personal use.

 You can learn more by visiting, or call the broker Jim Jennings at 251-978-3787 to learn first-hand how clients are benefiting from holding property in their IRAs.  It's a great alternative to putting all your eggs in the stock market basket!

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