Yes! In fact, it's becoming more and more popular. The information found below is compliments of the Equity Trust Company. You will find two buttons below. The first button is for frequently asked questions about using your IR; the second using your 401(k).
Most investors have not heard of this before because most custodians do not offer self-directed IRAs or 401(k)s. They only allow you to invest in their approved list of investment, usually limited to CDs, stocks, bonds and mutual funds.
The most important thing to remember is that when you use a self-directed IRA the type of investments you make will be the exact same kind of investments you are making presently. The only difference is that you will be main them in a tax-deferred/free environment.
At Equity Trust our truly self-directed IRA program puts you in the driver's seat. We do not sell investment products and because we are a passive custodian you will not have to worry about conflicts of interest. You are in complete control.
- How do I purchase real estate with my self-directed IRA?
- What are the differences between buying real estate for my self personally and purchasing investment real estate for my IRA?
- Can I have funds remitted directly to a Seller?
- I have a deal that will close tomorrow. How fast can Equity Trust transact a purchase?
- Can I transfer funds from an existing IRA, 401k, or 403b to a self directed IRA at Equity Trust Co., for the purpose of investing in real estate?
- I plan on purchasing a property with my IRA that will generate rental income. Does the rental income have to go back to my IRA?
- How does the rental income actually get back into my account?
- Can my IRA purchase real estate that I own presently?
- Can my IRA purchase real estate that my corporation, partnership, or LLC owns?
- May I live or work in a property that my IRA owns (i.e., personal residence, retirement home, office)?
- Can my IRA invest in a newly formed entity (limited partnership, limited liability company, c -corporation, land trust) that will invest in real estate?
- Can my IRA purchase an interest in a Subchapter S Corporation?
- May I use funds from my IRA to renovate property in order to sell it at a higher price?
- What if I do not have sufficient funds in my IRA to purchase a property outright?
- How do I sell a property owned by my IRA?
- When I sell a property owned by my IRA, may I keep a portion and send the remaining portion to Equity Trust Company?
How do I purchase real estate with my self-directed IRA?
The process of purchasing real estate with your IRA is very similar to purchasing other conventional investments with your IRA, with a few exceptions. Once your account has been established and properly funded, clients instruct Equity Trust, as Custodian for their IRA, to purchase the specific investment property. To make the investment, a Real Estate Direction of Investment must be submitted to Equity Trust Information included on the Real Estate Direction of Investment will include: location of property your IRA is purchasing, the amount needed from your account, where the funds need to be sent, and what documents Equity Trust requires as custodian for your IRA.
Once your Real Estate Direction of Investment has been received, Equity Trust will act on your instructions and remit funds to the title company/closing agent/attorney. If at anytime you have questions concerning completing a Direction of Investment, please feel free to contact our firm.
