Using Self-Directed IRAs for Investment Real Estate Purchases
Self-Directed real estate IRAs have been around since 1974, but many investors are unaware of this option. Investments with a Real Estate IRA are fully permissible under the Employee Retirement Income Security Act of 1974 (ERISA), which modified rules to allow investors to diversify their holdings to include non-traditional investments, including real estate. Real estate has been permitted to be held inside IRA retirement accounts since that date, yet the means to do that — the Self-Directed IRA — remains one of the least known and unheralded investment vehicles in the vast financial marketplace.
In this article, we will focus strictly on real estate investments, which might include raw land, houses, condos, commercial properties, mortgage notes, options, tax liens or deeds and deeds of trust.