Can you buy real estate with your IRA? The simple answer is yes, you can! We are working with a couple of clients who are currently buying or selling real estate with their IRA, so today I wanted to share a simple plan to show how you, too, can buy and sell real estate with your IRA.
First, find and investigate a custodian—the IRA company holding the assets. Our team uses a company called Equity Trust, but there are many great providers out there.
Next, set down your objectives. When you’re buying a property in an IRA, you can either go all cash or up to 50% of the loan value. That means if you have $150,000, you could control $300,000 in assets.
“Yes, you can buy real estate with your IRA!”
Once you decide what your objectives are, it’s time to go shopping. Put the property under contract under the name of the third party (custodian), and then go to closing. All funds will go through that custodian; you won’t take any direct receipts of that.
A follow-up question I’ve heard is, “Should I go through a traditional or Roth IRA?” Both can be great vehicles, but which is best for you depends on your individual needs and long-term objectives.
If you’d like to discuss this topic any further, give us a call directly. Hope to hear from you soon!