August 4, 2015

Self Directed IRAs and Real Estate Investments

Jon Galane
9 Min

Although the options are nearly unlimited when investing in real estate with a self directed IRA, it is extremely important to understand and follow the IRS guidelines to avoid hefty penalties for violations.

Some of the options available for the purchase of real estate investment properties within a self-directed IRA include:

  • Domestic or international real estate
  • Residential or commercial real estate
  • Vacation property
  • Single family or multi-family units
  • Vacant land

Use of real estate within your self-directed IRA does have some restrictions. The owner of the self-directed IRA and members of their immediate family cannot personally use or benefit from the real estate. For example, the owner of the self-directed IRA may not purchase an investment property with funds from their self-directed IRA for their child to live in while attending college. Another important guideline to note: money earned from the investment properties must go directly back into the IRA account used to purchase the property and expenses for the property must also be paid from the account.

Although the rules and guidelines for self-directed IRAs may seem confusing at first, the professionals at Mountain West IRA specialize in facilitating the management of self-directed IRAs and are available to guide investors through the process. Contact Mountain West IRA to schedule an informational appointment.

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