A self-directed retirement plan can purchase real estate outright with cash from the account. An account may also secure a loan to increase its buying power. Earnings would generated by rent and/or proceeds from sale.
An account may partner as tenants-in-common with other investors: person, company, another IRA, HSA, etc. Earnings from rent and/or proceeds from sale are fractional, corresponding to the account’s ownership percentage.
Your IRA can own a private equity percentage in an entity (LLC, land trust, LP, etc.) that invests in real estate. Account earnings would be dividends from that entity.
|Step 1||Open Your Account - Complete our online application. Your new account will be fully opened within two business days.|
|Step 2||Fund Your Account - Make a contribution, transfer money from a similar account (Traditional IRA to Traditional IRA), or initiate a rollover from a dissimilar account with the same tax status (401(k) to Traditional IRA).|
|Step 3||Make Your Investment - Choose the real estate approach that suits your expertise, find real estate, and close the deal on behalf of your self-directed IRA!|