Self-Directed IRAs & Roth IRAs for Real Estate

Your retirement account can buy real estate.
Most people just don't know it.

Stop limiting your IRA to stocks and mutual funds you can't control. A self-directed IRA or Roth IRA lets you own rental properties, land, and private notes — with the growth tax-deferred or completely tax-free.

$13T+held in U.S. IRAs
<5%is self-directed into real assets
Since 1974allowed under IRS rules

What this page will show you

  • How the IRS has allowed real estate inside IRAs since 1974
  • The difference between a Traditional and Roth IRA for property deals
  • The 3 steps to your IRA's first real estate purchase
  • The rules that keep your account safe (and the mistakes that don't)
The Problem

You know real estate. So why is your retirement stuck in the stock market?

You've built equity, managed tenants, spotted undervalued deals. But the largest pool of money you own — your retirement account — isn't allowed to touch any of it. Or so you were told.

The External Problem

Your IRA is trapped on Wall Street

Most brokerages only let you buy what they sell: stocks, bonds, and funds. Real estate — the asset class that built more American wealth than any other — isn't on the menu.

The Internal Problem

You feel like a passenger, not a pilot

Watching your retirement swing with every headline is exhausting. You'd rather own something you can drive past, improve, and rent out — something you actually understand.

The Real Issue

It shouldn't be this way

It's your money and your future. You should be able to invest your retirement in the assets you know best — and the IRS has actually permitted it for over 50 years.

The problem was never the rules. It was that nobody showed you how to use them.

Your Guide

We've helped real estate investors take back control of their retirement.

We get it — the first time someone hears "your IRA can buy a rental house," it sounds too good to be true. We thought so too. Then we read the tax code.

Self-directed IRAs have been legal since ERISA passed in 1974. The institutions just never advertised it, because they don't earn fees when your IRA owns a duplex instead of their mutual fund.

IRA.RE exists to close that knowledge gap: plain-English education, vetted custodian introductions, and a clear path from "is this real?" to your account's first closing.

Plain-English education, no jargon
Built by real estate investors
Aligned with IRS & ERISA rules

I'd flipped twelve houses with cash and loans, while my IRA sat in index funds. Nobody — not my broker, not my CPA — ever mentioned my IRA could be a buyer at the closing table. Once I learned the rules, everything changed.

— The story we hear from almost every investor we meet
The Plan

Three steps from Wall Street to Main Street

The process is simpler than most investors expect — and your existing retirement savings can move over without taxes or penalties.

1

Open a self-directed account

Set up a self-directed Traditional or Roth IRA with a specialized custodian that permits real estate. It takes about as long as opening a bank account.

2

Fund it — tax-free

Transfer or roll over funds from an existing IRA, old 401(k), 403(b), or TSP. A direct transfer between custodians triggers no taxes and no penalties.

3

Buy real estate inside the account

Your IRA purchases the property, holds the title, collects the rent, and pays the expenses. Every dollar of profit grows tax-deferred — or tax-free in a Roth.

Start With the Free Guide No pressure, no jargon — just the roadmap.
Know Your Vehicle

Traditional IRA vs. Roth IRA for real estate

Both can own property. The difference is when you pay tax — and for long-term real estate growth, that difference is enormous.

Traditional IRA Roth IRA Investor favorite
Contributions Pre-tax — may be deductible now After-tax — no deduction today
Rental income & appreciation Grows tax-deferred Grows 100% tax-free
Qualified withdrawals Taxed as ordinary income Completely tax-free after 59½ + 5 years
Required minimum distributions Yes — starting at age 73 None during your lifetime
Best when… You want the deduction now and expect a lower tax bracket later You expect big appreciation — a flip or rental that doubles inside a Roth is never taxed

Imagine a property your Roth IRA buys for $150,000 that sells for $300,000. In a taxable account, that gain gets taxed. Inside a Roth IRA, qualified withdrawals of it are tax-free. Forever.

The Possibilities

What a self-directed IRA can own

If it's real estate or paper secured by it, your IRA can probably hold it.

🏠

Rental Properties

Single-family and multifamily rentals with income flowing back to the IRA

🔨

Fix & Flips

Buy, renovate, and sell — profits return to the account untaxed today

📜

Notes & Mortgages

Be the bank: your IRA lends secured by real property and collects interest

🌲

Raw Land

Hold acreage, timber, or future development parcels for the long game

🏢

Commercial Property

Retail, office, storage, and industrial assets

🤝

Syndications & Funds

Passive LP positions in apartment and commercial deals

📋

Tax Liens & Deeds

County tax lien certificates and deed investments

⚖️

Private Placements

Real-estate-focused private equity and joint ventures

The Stakes

Two retirements. Same investor. One decision.

Keep doing what the brokerage says

  • Retirement rides every market crash with no exit
  • Decades of fees quietly compound against you
  • Your real estate expertise earns you nothing inside your IRA
  • Rental profits you earn outside the IRA get taxed every single year
  • You retire hoping the market cooperates

Take the wheel with a self-directed IRA

  • Your retirement owns hard assets you chose yourself
  • Rent checks compound tax-deferred — or tax-free in a Roth
  • Your deal-finding skill finally works for your future
  • Diversification beyond paper assets
  • You retire on income from property, not predictions
Play By the Rules

Three rules every IRA real estate investor must know

The strategy is powerful because it's IRS-sanctioned — which means the rules matter. Here's what keeps your account protected.

No self-dealing

Your IRA's property is for investment, not personal use. You (and certain family members) can't live in it, vacation in it, or work on it yourself. The IRA benefits — not you, until retirement.

Watch disqualified persons

Your IRA can't buy from, sell to, or transact with you, your spouse, parents, children, or their entities. Deals must be with unrelated third parties.

All money flows through the IRA

The account pays every expense and receives every dollar of income. Leverage is possible with non-recourse loans (note: debt-financed gains may trigger UDFI/UBIT tax — plan with a professional).

Questions

Frequently asked questions

Is it really legal for an IRA to own real estate?
Yes. Since ERISA in 1974, the IRS has defined only what an IRA cannot hold — life insurance and collectibles. Real estate has always been permitted. You simply need a custodian that supports alternative assets, which is what "self-directed" means.
Can I move my existing IRA or old 401(k) into a self-directed IRA?
In most cases, yes. Direct transfers between IRA custodians and rollovers from former employers' 401(k), 403(b), or TSP plans are tax-free and penalty-free when done correctly. Current-employer plans sometimes restrict rollovers until you leave or reach 59½.
Why do investors love the Roth IRA for real estate specifically?
Because real estate's biggest wins come from appreciation and forced equity — and inside a Roth, that growth is never taxed on qualified withdrawal. A successful flip or a rental that doubles in value inside a Roth IRA produces gains that are tax-free for life, with no required minimum distributions.
Can my IRA get a mortgage to buy property?
Yes, through a non-recourse loan — the lender's only remedy is the property itself, never you personally. Be aware that the debt-financed portion of profits can be subject to UDFI/UBIT tax, so model the numbers with a professional first.
Who collects the rent and pays the bills?
The IRA does. Rent is paid to your IRA's account, and taxes, insurance, and repairs are paid from it. Most investors hire a property manager; with "checkbook control" structures (an IRA-owned LLC), you can sign for the IRA's transactions directly.
What does it cost to self-direct?
Self-directed custodians typically charge a setup fee plus flat annual fees (often a few hundred dollars per year) rather than a percentage of assets. For accounts holding real property, flat fees are usually far cheaper than the percentage-based fees on a comparable portfolio.
What's the biggest mistake to avoid?
Prohibited transactions — using the property personally or transacting with disqualified family members. A prohibited transaction can disqualify the entire IRA, making it all taxable at once. The rules are easy to follow once you know them; that's exactly what our free guide covers.
Your Move

Retire on rent checks, not market luck.

Get the free IRA Real Estate Investor Guide — the rules, the Roth strategy, and the 3-step roadmap from your current account to your IRA's first property.