Investing in Real Estate
Investing in Real Estate Using Your Self-Directed IRA
Your self-directed IRA can purchase any type of real estate, including single-family and multi-unit homes, apartment buildings, co-ops, condos, commercial property, and improved or unimproved land. The property can be used to generate income, or for appreciation. There is no time limit to how long your IRA owns the property; it can be used as an investment property, a rehab, or to appreciate in value. If the IRA leverages cash to purchase the property, the IRA will own 100% of that asset.
There are very few differences between purchasing the property as an individual and purchasing the property with a self-directed IRA. The most important difference is to understand that the client and the client’s IRA are two separate entities. Even though the client will be making all the decisions, you must remember that the IRA account is the actual buyer and all paperwork must reflect this fact.
Here are the steps:
- Find the property that you want to purchase.
- If a deposit is required, please submit the following:
Real Estate Asset Purchase Directive
- Sales Agreement or equivalent documentation signed “Read and Approved”
- For Real Estate Closing:
Since the property is owned by your IRA, the property should be titled as follows: CAMA SDIRA LLC FBO [ YOUR NAME ] IRA. It is also possible to use your account number for the title of the property. In this case, it will be titled: CAMA SDIRA LLC FBO [ YOUR NAME ] IRA #12345
All documents must be marked “Read and Approved” by you. The exception to this rule is due diligence documents – we do not need to review these.