Using your IRA/401K for Real Estate Investing (Pottstown)

Home Inspector with Reading, Pottstown, Norristown, Philadelphia

Using your IRA/ 401K for Real Estate Investing (Pottstown)


My wife, Tina, and I have been investing in real estate around Pottstown, PA since 1997.  As self-employed professionals, we found it was next to impossible to get financing after the economic downturn started.  We started to look at other options and one of those options was using our retirement funds for real estate investing.  In other words, we started using our 401K and IRA accounts to buy homes!


This type of investing is called "self-directed IRA" investing and we are just sorry we didn't try this sooner.  "Self-directed" means that the account owner can select any assets of their choice for investment purposes, provided it's not prohibited by the IRS.  Real estate is one of the popular choices, but you can also direct your investments towards buying a business, investing in notes, tax liens, stocks, raw land, etc.


Tina and I have been real estate investing for years and we are comfortable with finding good deals.  One of the largest benefits of using our retirement accounts for investing is that we can control our investment returns and watch those gains compound and grow tax-free in our Roth accounts (grows tax-deferred in traditional accounts). Keep in mind, the real estate must be for investment purposes only (no personal use) and everything is titled in the name of the 401K or IRA.  You also cannot pocket any of the gains for yourself personally.  The profit must be kept in the retirement account.  Failure to follow the proper process and rules could lead to IRS penalties. Make sure to do your research!   A great place to start is by speaking with a third-party administrator like or meeting other investors who are already doing what you want to do!


home inspector pottstown


David Artigliere is a home inspector around Pottstown and Reading and works with homebuyers and real estate investors in the area.  

He is available 7 days a week and can be reached by visiting his website at or calling (610) 220-1907.

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david the home inspectorDavid Artigliere, owner of ARTI Home Inspections LLC, is a home inspector in Pottstown, Reading, Norristown, Royersford and surrounding areas. 

He is available 7 days a week and can be reached at 610-220-1907.


Re-Blogged 2 times:

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  1. Charles Stallions 04/27/2012 12:36 PM
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Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

David, great information about buying through IRA accounts. Helped a buyer last year do this. Suggested,

Apr 10, 2012 01:42 AM #1
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

David, what a great way to start your investment portfolio!     I have a client buying right now using his 401!

Apr 10, 2012 11:55 AM #2
David Artigliere
Reading, Pottstown, Norristown, Philadelphia - Collegeville, PA
ARTI Home Inspections, ASHI Certified Home Inspect

Pamela,  that's great!  The presentation tonight is to real estate agents, a perfect situation for doing it yourself or helping a client.

Joan- I'm finding a lot more people are doing this than I thought.  It's great the word is getting out there because it's an amazing way to save for retirement!

Apr 11, 2012 08:02 AM #3
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

David looks like you know what you are doing since you have been so for years and continued during the downturn.  Potential investor using their IRA really have to be mindful that they can't keep any of the gains it has to remain in the retirement account.

I hope your account continue to grow with the real estate investments you make.

Apr 11, 2012 08:21 AM #4
JT Kaelin
ExecuHome Realty, Inc. - Severna Park, MD

Thanks for the input...I will contact CAMA about attending one of their workshops

Apr 13, 2012 09:11 AM #5
David Artigliere
Reading, Pottstown, Norristown, Philadelphia - Collegeville, PA
ARTI Home Inspections, ASHI Certified Home Inspect

Jennifer- that's exactly right!  There are benefits to using your IRA to self-direct, but those gains must stay in that retirement account.  It's all good because of that tax-free (or tax-deferred) growth!


JT- CAMA is a great company and we're happy with them.

Apr 18, 2012 07:05 AM #6
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

thank you very much for the informative and interesting post. I get so much out of the active rain network.

Apr 20, 2012 01:12 AM #7
David Artigliere
Reading, Pottstown, Norristown, Philadelphia - Collegeville, PA
ARTI Home Inspections, ASHI Certified Home Inspect

Paul- AR is a great source of information.  Thanks for reading!

Apr 22, 2012 04:26 AM #8
Robin Moffitt
Gold Star Realty, Inc. - Nampa, ID
"Gold Star Service....Gold Star Results !"

Awesome post!  We've been using folks IRA funds and general private lenders over the past 3 years!  It's a great way to maneuver thru this crazy time as an investor looking to acquire multipe properties.  Thanks!

Robin Moffitt

Apr 23, 2013 05:55 AM #9
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David Artigliere

ARTI Home Inspections, ASHI Certified Home Inspect
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