How to Invest Your IRA in Real Estate

To invest your IRA in real estate, you’ll need to set up a “self-directed IRA” and transfer funds from your current IRA provider or prior employer’s 401(k) into your new account. You can also begin with new annual contributions, but depending on the real estate investment it may take a while to accumulate enough funds to make a real estate investment from your self-directed account.

A self-directed IRA allows you to invest in a wide range of assets permitted by law. While real estate is the most popular choice, these accounts can also be used to invest in startups, private equity funds, venture capital funds, precious metals, and even cryptocurrency.

Companies, such as Directed IRA, specialize in offering self-directed IRA accounts, making it easier to diversify your portfolio and explore alternative investments.

Why Most Investors Don’t Know They Can Invest Their IRA in Real Estate

Many investors are surprised to learn they can use an IRA to invest in real estate. That’s because most retirement accounts are held at large financial institutions that limit investment options to stocks, bonds, and mutual funds. These firms generally do not allow alternative assets, such as real estate, because they don’t specialize in administering those investments.

A self-directed IRA changes that. A self-directed IRA is simply an IRA whose custodian allows investments in alternative assets permitted by law, including rental properties, raw land, commercial real estate, private lending, private companies, precious metals, and more.

Directed IRA specializes in self-directed retirement accounts. As a passive custodian, we don’t sell investments or provide investment advice. Instead, we provide the custody and administration that allows investors to purchase and hold real estate and other alternative assets within their retirement accounts.

Key Benefits of a Self-Directed IRA

Expanded investment options beyond stocks and mutual funds
The ability to invest in what you know—whether that’s real estate, startups, or private lending
Powerful tax advantages through Traditional and Roth account structures
Greater diversification and control over your retirement strategy

Note:

As mentioned, Directed IRA does not sell or endorse any investments. We are a passive custodian, meaning we process and report investments that our clients choose and direct. Every investor should perform their own due diligence and consult with legal or tax advisors where needed

Book a New Account Call with Directed IRA

Our entire Directed IRA team is friendly, knowledgeable, and genuinely excited to help you. Reach out to any of our specialists today and take the first step toward self-directing your IRA or Solo 401(k)!