Self Directed IRA Real Estate

The main attraction of self direction is the flexibility to place any legal investment in your IRA account, including real estate. Freedom to invest in alternative assets allows our clients to bring balance to their IRA  investments, which have traditionally been dominated by the securities market. It also allows real estate investors to utilize their own market expertise by investing in an asset they know and understand.

Self directed IRA real estate requires managing your IRA with an IRA administrator that allows self direction. Self directed plans allow the investor to select his or her investments independently, providing they follow IRS guidelines. New Direction provides investors the education and hands-on assistance they need to skillfully and confidently self-direct their account.

Once you’ve established your self directed IRA account, you may direct your plan administrator to purchase  any real estate property in which you want to invest, as long as it falls within IRS guidelines.

Our role at New Direction IRA is to be a trusted provider of custodial services for retirement accounts and HSAs. We specialize in the book keeping and reporting for unique and alternative assets. As such, we do not provide investment advice or endorse any products.  As your IRA custodian, we follow your investment instructions, review all necessary documents, sign purchase agreements on behalf of your IRA, and more.. Ultimately, with a self directed IRA, both the account  and all investment choices are under your control.

As with any IRS-related decree, there are exceptions. When purchased, the property becomes an asset of your IRA arrangement. In addition:

• You cannot personally own the property purchased by your IRA
• You must ensure that your intended purchase is not a prohibited transaction.

A prohibited transaction involves the improper use of your IRA or Qualified Plan holdings by you or any disqualified person. A disqualified person is any member of your immediate family (except siblings), employers, certain partners, fiduciaries, and other categories specified in the IRS code.

• The asset must be for investment purposes only.
• Neither you, your spouse, nor your family members (other than siblings) may have owned the property prior to its purchase by your IRA.
• Neither you nor your family members (other than siblings) may live in or lease the property while it’s appropriated by your IRA.
• Your business may not lease or be located on any part of the property while it’s owned by your IRA.