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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.

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Real Estate

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). 
Learn More About Real Estate Compliance
Tax Lien

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.

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Compliance-first guidance

Help avoiding prohibited transactions and IRS violations.

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Flat, transparent fees

No commissions or asset-based pricing.

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Execution speed and flexibility

Structures available for hands-on or custodian-managed investing.

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24,000+ clients nationwide

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

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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.

$0

setup fee

$495

annually

Checkbook IRA

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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

$495

annually

Solo 401(k)

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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

$399

annually

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.

Open an account

Step 1:

Choose the right self-directed structure. Select a Self-Directed IRA, Checkbook IRA, or Solo 401(k) based on your investing needs. 

Open an Account

Get your account number

Step 2:

Open your account and receive your account number

Fund your account

Step 3

Transfer, roll over, or contribute retirement funds. 

Execute the purchase

Step 4

Submit earnest money, close on the property, and begin managing income and expenses through your retirement account.

Roth IRA to Invest in Real Estate

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.

    Greater earning potential

    Real estate offers steady cash flow, appreciation, and the potential for higher returns than traditional retirement investments.

    Direct investment control

    Choose the properties, locations, and strategies that fit your goals—without relying on brokerage platforms or fund managers.

    Faster transactions

    Move quickly on deals with checkbook control and simplified processes, reducing the risk of missing time-sensitive opportunities.

    Custodial support

    Your IRA custodian handles the paperwork and compliance, while you focus on identifying and managing real estate investments.

    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.

    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.

    What Real Estate investments can I make with a Self-Directed IRA?

    Most American’s 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:

    Land Investments

    Raw land and farm land.

    Traditional Residences

    Single-family homes and townhouses.

    Other Residences

    Duplexes, mobile homes, apartments, and condos.

    Income-Generating Properties

    Commercial and rental properties.

    Notes and Options

    Real estate notes and purchase options.

    Liens and Deeds

    Tax lien certificates and deeds.

    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.

    Connect with an Expert

    See What Our Clients Have to Say

    I’m beyond pleased with having my self-directed IRA in your teams capable hands. In a few short months, it’s already proving to be a solid retirement investment vehicle. The fees are insignificant compared to the value. Many thanks.

    Ann M. C.

    Illinois

    The process of setting up my self-directed IRA was quick and painless. There were a lot of forms to be completed, but the customer service at IRA Financial Group is great and they are very quick to respond. I was able to complete my set up quickly and get my funds transferred very quickly. Thanks!

    Christy

    Virginia

    I am extremely pleased with the service and professionalism provided by the IRA Financial Group. I don’t think you can find a better firm to handled Self Directed IRA accounts. Keep up the great work and I will always do business with you.

    Owen S.

    Texas

    IRA Financial Group was invaluable in setting up my account. They explained all of the details involved with the process and made the entire evolution simple and efficient. If someone is considering a self-directed IRA, IRA Financial Group is the clear choice.

    Michael J.

    Utah

    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.

    Can I buy a rental property with my IRA?

    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.

    Ready to plan for your future?

    Take control of your retirement by investing in alternative assets like real estate, cryptocurrency, businesses, and more. Start creating wealth today by opening an account.

    Open Account
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    Ready to plan for your future?

    Take control of your retirement by investing in alternative assets like real estate, cryptocurrency, businesses, and more. Start creating wealth today by opening an account.

    Open Account

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