Three “Golden Rules” of the Real Estate IRA

Many of us are aware of the potential for real estate to function within our portfolio. Not only do we believe in real estate as an investment, but we know that over time, it tends to go up in value – there is, after all, only so much land to go around! But what when you incorporate real estate into your retirement portfolio? Do the rules change when you’re running a Real Estate IRA?

Truthfully, many of the same principles of real estate hold true when you’re investing in real estate from within a Real Estate IRA. But that doesn’t mean there aren’t some other things to be aware of – this is, after all, a different type of investment account.

Even so, you’ll find that investing in real estate through a Real Estate IRA isn’t only intuitive, but can be just as intuitive as investing in real estate from a “general investment” perspective. We’ve put together three “Golden Rules” here to not only demonstrate some of the similarities but some of the differences in investing in real estate for short-term growth and investing in real estate for retirement:


Rule #1 of the Real Estate IRA: Location, Location, LocationReal Estate IRA

No, we’re not reinventing the wheel here. The key point? The same rules that apply to good real estate investing will still apply when you invest in real estate from a Self-Directed IRA. Don’t expect your investments to simply go up over time because you’ve made them part of an IRA. You should still be looking for the best deals, doing your due diligence, and making sure that you’re putting your money in the right places. Location matters for all real estate; it’s no different when it comes to investing for retirement.

We include this rule to demonstrate that the principles of good real estate investing don’t quit simply because you’re investing through a different type of account. You’ll still want to do your diligence, your research, and incorporate everything you’ve learned as an investor.

Rule #2 of the Real Estate IRA: Know the Real Estate IRA’s Limits

Not everything about real estate through an IRA is the same as real estate through traditional means. You’ll want to be aware of your limitations in order to not only comply with all of the appropriate rules and regulations, but to take advantage of any possible benefits to using a Real Estate IRA.

But it starts with knowing your limits. And that means knowing the prohibit transactions that come along with a Self-Directed IRA. There are plenty of ways to invest in real estate through an IRA – including raw land, single family homes, retail space, and more – but there are limits like not using what you hold in a Real Estate IRA for personal use. We recommend you read more or simply get in touch with us at by calling 866-7500-IRA(472).

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Rule #3 of the Real Estate IRA: Remember to Think Long-Term

Because your real estate investments are designed to provide you with a nest egg rather than a quick buck, it’s essential that you think long-term. You don’t want to succumb to the winds of quick change; you want to have an eagle-eye view of the entire situation by viewing your real estate through a long-term perspective. That means having an eye on long-term real estate market growth and being willing to leave real estate in the hands of property managers while you do other things. The goal of your Real Estate IRA, after all, shouldn’t simply be to reward you with a nest egg, but to reward you with the peace of mind and security that comes with a nest egg.

Remember to call us at 866-7500-IRA(472) if you want to know more about the advantages, limits, and possibilities all present within a Real Estate IRA.




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