The New Direction Trust Company Blog

real estate ira investing

The Basics of Real Estate IRA Investing

Real estate IRA investing can be a surprisingly easy method for savvy investors to supercharge their retirement returns. Many are familiar with real estate investing outside of a tax-advantaged account. In many ways, the process of investing with such an account is quite similar. Most retirement investors don’t know this, partly because they are simply … Read More

prohibited transactions

Real Estate IRA – How the IRS Treats Proh...

When it comes to owning real estate in an IRA, it may be tempting to use your account-held property. However, the IRS prohibits such use. Prohibited transactions can result in steep penalties and distribution of the account. At NDTCO, we hear a lot of questions from investors about what they can and can’t do with … Read More

non-recourse loan

What is a Non-Recourse Loan?

Leverage can be a valuable tool to increase the buying power of an IRA. Leveraging means borrowing funds to increase purchase power and acquiring a property that would otherwise be unaffordable. Surprisingly, many people aren’t aware that their IRA or 401k funds can utilize a non-recourse loan for a real estate IRA investment. Ready to open … Read More

partner with your ira

How to Partner with Your IRA to Buy Real Estate

Is it possible to “partner” with your IRA? Let’s say I provide half of the (non-retirement) money and my IRA supplies the other half. “We” then elect to execute a fix & flip. We would each receive 50% of the net profits, correct? I thought you could only do this if you start a business … Read More

live in my real estate ira property

Can I Live in my Real Estate IRA Property?

Question: Is it true I can’t live or vacation in my real estate IRA property? Answer: True. The IRS prohibits benefiting personally from any asset owned by your IRA (i.e., self-dealing). Furthermore, you can’t let any of your lineal relatives benefit from the asset either. This includes your parents, grandparents, children, grandchildren, spouse and fiduciaries. … Read More

manage a real estate ira

How to Manage a Real Estate IRA

How do I manage a real estate IRA? How do I manage expenses and cash flow in an IRA, particularly when I reach retirement age and have to take required minimum distributions (RMDs)? Planning for cash flow needs is critical for any investment strategy. This is especially true when investing in illiquid assets like real … Read More

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