Did you know that you can invest in real estate with the money in your IRA? Its true. Like most things, there are governing rules. The good news is as long as you stay within the guidelines you can do some really great things including buying investment real estate with your IRA funds. With a self-directed IRA you are in control and can actually team-up with people who make millions every year by knowledgeably and skillfully investing in real estate all over the country with IRA funds.

Buy Investment Real Estate with your IRA Funds

Did you know that you can invest in real estate with the money in your IRA?Buy Investment Real Estate with Your IRA Funds

Its true.

Like most things, there are governing rules.

The good news is as long as you stay within the guidelines you can do some really great things including buying investment real estate with your IRA funds.

With a self-directed IRA you are in control and can actually team-up with people who make millions every year by knowledgeably and skillfully investing in real estate all over the country with IRA funds.

Most people don’t know the first thing about picking profitable stocks so they leave it to their equally clueless stock broker or mutual fund manager.

It has always been my opinion that if those guys new what was best for you to make your millions then why aren’t they living the high life and retired already?

You would think the people who chose where literally trillions of dollars are invested in on a daily basis would be making more money than they do.

Anyways, it has been my experience that if you want to create wealth or even just enough monthly cash flow to cover your living expenses and a little more all you have to do is find people who are actually successfully doing what you aim to do and then do what they do.

Investing profitably in real estate with your IRA funds is very straight forward and simple though you do need people with certain skill sets and specific knowledge to do so and remain compliant with the regulations governing the use of qualified funds.

The rules to using your IRA funds to purchase real estate.

1. A third party custodian.

First off, a third party custodian or holding company is needed to roll your current IRA funds into for it to be called “self-directed”. This is simple to do. There is typically very little or no cost to do this.

Once funds are securely held in this new account with this new management partner then you are free to begin looking for properties to invest in.

2. You are not allowed to leverage with your IRA funds.

What this means is that you cannot put a certain percent down and take a mortgage on the rest. The purchase needs to be completely IRA funds or a mix of IRA funds and personal funds etc.

As long as there isn’t a loan or debt being incurred in the transaction.

3. You decide where the monthly revenue goes.

You generally have two choices here.

A. You can elect to have all the revenue go straight back into your IRA account to continue to add to your savings or…

B. You can elect to have the revenue or profits come to you. In which case you will be required to claim this as income and pay your income-tax like any other earned income or qualified account disbursement.

4. You can buy many things with your self-directed IRA funds.

You can actually buy gold, silver, and other assets. You cannot buy life insurance.

5. Losses including depreciation cannot be deducted in taxes.

Deductions from owning investment properties is usually a big plus for investors however, when holding property in an IRA, you are prohibited from writing off those otherwise tax deductions.

6. What kind of property can you buy?

You are investing in real estate for the purpose of making a profit therefore it is a business purchase or asset purchase.

This means that the real estate you buy must not be  a personal residence, second home or occasional rental.

Another aspect to this is you can’t use your IRA to purchase a property you already own. The property must be a new purchase directly into the IRA.

Learn more…

There are many reputable custodian companies you can contact for more specific information about your situation and general rules governing the use of IRA funds to purchase investment real estate.

There are also reputable real estate investment companies who specialize in locating, making rent ready, placing tenants, and managing these properties all over the country. I personally use and recommend Strongbrook REIC.

They helped us purchase two properties in Indianapolis with our IRA funds.

Included in your Free Game Plan is a snapshot of your investing potential including using self-directed IRA funds to further your financial goals.

Leave a comment below!

Buy Investment Real Estate with Your IRA Funds by Joe Nielsen


  1. Without debt in America we wouldn’t have curnercy. The way our money is created is out of thin air and recreated over and over based on a flawed reserve system. I love precious metals.Gold is a great way to hedge against inflation, not necessarily as an investment with real growth potential. Just look at the drop it has taken over the past month. Gold always holds its value against inflation. An ounce of gold today buys a good men’s suit just as it did in 1920, 1940, 1950, 1960, 1970, 1980, 1990, 2000 and 2010. Just check the price history of gold. Real estate used to be similar, holding it’s value against inflation. But the trends in lending, speculation and government interference have caused real estate to lose value against inflation. Self directed IRA’s are great and really do enable the individual investor to chart his or her own course. Wouldn’t be surprised if the Fed’s stop this form of IRA. Wouldn’t want the masses to make their own decisions now would we?

    • Hi Joseph!
      Sounds like you just might be a listener of the Real Estate Guys Radio show!
      Yes I completely agree with you. Holding at least a portion of your long term savings in a previous metal allows you to take advantage if or when the currency of your particular country goes bust. If this did happen you would be able to use that gold or silver to buy all the necessities of life and even buy insanely discounted (now that depreciation AND inflation have kicked in) assets that produce long term cash flow and wealth!
      Ha ha yes having the self-directed IRA seems to be a little counter to the gov’s control everything idea but alas they still set the rules and get their all important tax when that IRA account is withdrawn.
      Thanks for the comments Joseph!

  2. Hi Joe! Your website is something I totally needed! I understand the importance of making good investments and managing money. But all I know how to do is to save some money every month and put it in my savings. I really need to start learning how to invest and put my money to work for me. I believe your website will be of great help not only for me but for many other people. I’m looking forward for more tips and advice from you.
    Thank you!


    • Hi Michelle,
      I’m glad you stopped by and found this of value.
      You might be surprised to learn that saving your money is actually costing you money. By saving money in an account that pays you less than 1% and inflation is upwards of 10-20% it means the value of your particular currency “dollar” loses its purchasing power. You hit the nail on the head when you said you need to have your money work for you. Truly wealthy people invest their money into assets that produce cash flow and grow in value over time.
      Thanks for your comment!

  3. Wow Joe, you are a wealth of information! My husband and I actually have 2 rental properties. We are in Canada though so I think the rules would be a bit different here. In Canada we have RSP’s which I guess is similar to the US IRA’s.
    I know that you can use your RSP’s to purchase your first home (home buyers plan), but I haven’t heard anything about using them towards rental properties. That would be great as we are looking to get another one, but unfortunately we can’t right now (unless we could use our RSP’s). If you have any information on Canada, please pass it along!

    • Hi Tanya,
      Thank you for your compliments and comments!
      Absolutely you can use your RSP to purchase investment real estate. In fact you don’t even have to purchase in your own country. If you wanted a rental property in the beautiful country of Belize you could do that while being able to use it once or twice a year while on vacation. Here is an article speaking to this point.
      Happy investing!

  4. Thanks for all the magnificent information.
    Some time ago I was looking information in this area, and could not find answers.But, here I found everything was in need.
    It helped me a lot

    • Hi Emanuel,
      Thanks for taking the time to read and leave a comment. Glad it was useful for you!

  5. Great post here – thank you for sharing!! I often think some of the rules surrounding these schemes can be extremely confusing, but you’ve made it really easy to digest and understand =)

    • Hi Zoe,
      Yes there are rules but there are also very smart people who have figured out how to safely navigate them so you and I can make good investment decisions. Thanks for reading!

  6. Wasn’t aware of any of this. Thanks for that info Joe! Really grateful to find your site. Jamie.

    • Hi Jamie,
      There is a wealth of information available to us thanks to the internet and other mediums. This is just a single item that if used properly can create enormous opportunities! Thanks for stopping by!

  7. I just fell upon your site, and wow. I had no idea I could invest my money that way. Going to see what I can do to get this started. Thank you so much for this information. Gonna enjoy the download too.

    • Hi Debra,
      You are not alone. There are literally 4.5 trillion dollars currently trapped in qualified plans in the US right now and they are all tied up in paper assets aka the stock market which is poised to crash very soon. It is prudent to take some of that money and put it into assets that produce cash flow each month. Thanks for the compliments and the comments! Enjoy the book download!

Leave A Comment