The Real Esate IRA Basics

A Self-Directed IRA or “Real Estate IRA” gives you the freedom to invest in alternative assets such as single-family and multi-unit homes, apartment buildings, condominiums (leveraged or un-leveraged), improved or unimproved land, commercial property, and more.

The American IRA team was founded by investors for investors. Our top management has been investing in real estate for over 40 years, which means our team is familiar with all aspects of real estate investing. Our IRA real estate custodians speak your investment language.

Limitless Investment Options

 You can, in fact, borrow money within your Real Estate IRA to purchase real estate. It has to be non-recourse financing (terms may vary by lender); however, non-recourse financing and unrelated debt income tax (UDIT) may apply.

 Your property manager collects rental income, pays all expenses, and all the profit goes into your retirement account tax free or tax deferred.

 You can own real estate within a Roth IRA and collect rental income tax-free.

 You can sell property within your Real Estate IRA without having to worry about capital gains taxes.

 You can use a tax-deferred exchange inside your Real Estate IRA to defer UDIT tax.

 You can partner with yourself and others at the time of acquisition of the asset.

Important Rules to Remember

 Neither you nor any disqualified person is permitted to use the property.

 Since your IRA is the owner of the property, all legal documents must be vested in the name of your IRA (American IRA, LLC FBO Your Name IRA).

 Purchasing the property from yourself or disqualified persons is prohibited.

 You are not permitted to manage, repair, nor service the property yourself.

 All investments made with your IRA must be for the benefit of your retirement account. You nor any disqualified person is permitted to receive ‘current benefit’ from your account. Example: Management fees, Maintenance fees, real estate commissions, or provide “sweat equity” to the property by performing work.

Real Estate IRA Professionals

Working with professionals, including real estate agents, non-recourse lenders, title companies, escrow companies, attorneys, and property managers is the key to ensuring that you’re making a sound investment.

Our Experience

At American IRA, we do this every day. We have simplified our process so that you can quickly and easily take care of your Real Estate IRA transactions. If you would like to open a new account or have questions about opening a new account, please contact our office 1-866-7500-IRA(472) or If you are an American IRA Client and you have questions regarding the investment process, please contact our office 1-866-7500-IRA(472) or

This is a great opportunity afforded to us by our government; as long as you follow the IRS guidelines, this is a phenomenal tool!

External Resources

What types of investments can I make with my IRA? Click here to get your answer directly from the IRS website.

Real Estate Investors Groups:

  Atlanta REIA

  Charlotte REIA


  Metrolina REIA

  Upstate CREIA