What is a real estate IRA?

"Real estate IRA" is a term used to describe a real estate investment(s) in a self-directed IRA or 401(k).

With a real estate IRA, you can earn tax-free/tax-deferred returns on your real estate investments.

What types of real estate IRA investments are allowed?

The following is a partial list:

• Raw land
• Single-family homes
• Commercial property
• Apartments
• Duplexes
• Condos/townhomes
• Mobile homes
• Real estate notes
• Second mortgages
• Partial notes
• Real estate purchase options
• Tax liens certificates

What investments are not allowed?

The following rules govern investments in a real estate IRA:

• Your IRA Cannot Purchase Property Owned by You or a Disqualified Person
• You Cannot Put Any of Your Own Money Into the Deal
• You Cannot Have "Indirect Benefits" from Property Owned by Your Self-Directed IRA
• Real Estate IRA Investments Are Uniquely Titled
• IRA Investments that Use Financing Must Pay UBIT
• Real Estate IRA Expenses Must Be Paid from Your IRA
• Real Estate IRA Income Must Return to Your IRA

For more information, see IRA Rules.