What Kind of Real Estate Can a Self-Directed IRA Investor Put in a Retirement Portfolio?

The Best Self-Directed IRA for Real Estate

Investors who want to diversify out of the stock market often turn to a Self-Directed IRA. The reason? These investors know that they can turn to alternative asset classes if they take control over their own retirement accounts. But what does that look like in practice, and what does it mean when someone is searching for the “best Self-Directed IRA for Real Estate”? Let’s zoom in on what it means to invest in Real Estate through a Self-Directed IRA.

What You Need to Know About the Best Self-Directed IRA for Real Estate

An IRA investor can seek higher returns and broader retirement asset diversification through a Self-Directed IRA. This style of investing means investors can explore retirement assets that are out of the range of the typical retirement investor, who is often limited to stock and bond funds. Instead, a Self-Directed IRA investor can turn to Real Estate, precious metals, private companies, and other forms of investing to get the most out of their retirement account.

Why does it work? Because the IRS doesn’t prohibit individual investors from putting retirement-protected money into Real Estate. You simply need to structure your IRA so you’re capable of doing it. For many, that means using a Self-Directed IRA custodian, who serves as the administrator on the account. When you’re ready to make a Real Estate investment, you can then reach out to this administrator, who files the paperwork for the purchase on the IRA’s behalf.

This is a critical point, because it means that you’re doing things the right way: keeping your retirement funds away from your personal investments. By separating the two, you can keep the tax benefits that come with investing through a retirement account. That includes Real Estate assets, of course, but you can also invest in precious metals, private LLCs, tax liens, and even cryptocurrency. You simply need to get set up with a Self-Directed IRA administration firm to act as custodian on the account.

Is There a “Best Self-Directed IRA for Real Estate”?

The question posed at the top presupposes that there is a unique account type for Real Estate in an investment portfolio. The truth is, you can use any Self-Directed IRA for Real Estate assets so long as you go about it the right way.

However, your Self-Directed IRA should also go through a Self-Directed IRA administration firm with a long history of professional experience in Real Estate. That means that when you do your homework, you should look for a Self-Directed IRA administration firm that has a team of experienced people who have worked in assets like these before, especially from a retirement perspective. These are the professionals who will be administering your account, and it’s important that you trust them with the paperwork for your next purchases through your retirement account.

There are plenty of options for investing in Real Estate in retirement, including using a wide variety of retirement investment vehicles. That includes Self-Directed Roth IRAs, Traditional IRAs, and even Solo 401(k) plans. With Real Estate, the key is whether you have the funds and/or flexibility to handle a Real Estate purchase. And it will come down to your own decisions, as you won’t rely on the advice of the Self-Directed IRA administration firm when choosing which assets you buy.

Real Estate can be a complicated thing and adding the layer of retirement benefits on top of it can be hazardous if you don’t work with the right people. Interested in learning more about Self-Directed IRAs?  Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation.  Download our free guides or visit us online at www.AmericanIRA.com.