The Self-Directed IRA means freedom, but freedom also brings questions. Maybe the most important one? What types of investments can I hold in a Self-Directed IRA? The answer includes traditional retirement assets (stocks, bonds, funds) as well as a litany of alternative asset classes like real estate and private loans. So, let’s explore a little more deeply by looking at the answers in specific.

Real Estate

What sorts of real estate counts in a Self-Directed IRA? The definition is broad. You can hold rental homes, commercial buildings, raw land, or even farmland. The income and gains flow back into the IRA, growing tax-deferred or tax-free depending on the account type. The key is to keep all transactions arm’s length—you can’t live in or personally manage the property—but the potential for steady, tangible growth makes this option popular.

Learn more about Self-Directed IRAs for real estate here at American IRA.

Private Lending

With private lending, your IRA becomes the lender. You issue loans to qualified borrowers, collect interest, and let the repayments build wealth inside the account. It’s a powerful way to generate passive income while diversifying beyond stocks or property. Each loan is documented and serviced through the IRA, ensuring compliance while you play the role of investor, not participant.

Learn more about Self-Directed IRAs for private lending and notes here at American IRA.

Precious Metals

Gold, silver, platinum, and palladium all qualify for inclusion in a Self-Directed IRA. The only catch is that they have to meet IRS standards for purity and form. Precious metals can serve as a hedge against inflation and market volatility. They also bring something psychological to the table—tangible value you can hold, rather than numbers on a screen. Many investors use metals to balance portfolios that lean heavily on paper assets.

Learn more about precious metals investing here at American IRA.

Tax Liens and Deeds

Tax lien investing is an overlooked strategy, but it’s allowed within a Self-Directed IRA. When you purchase a tax lien, you’re essentially paying someone’s property tax bill in exchange for the right to collect it—with interest—later. In some cases, if the property owner doesn’t repay, you may even end up owning the property. It’s a niche investment that requires research but can produce attractive returns when managed carefully.

Learn more about tax lien investing in Self-Directed IRAs here at American IRA.

Private Equity

Private equity refers to investing in private businesses that aren’t publicly traded. For experienced investors, this can mean joining a start-up, funding a friend’s company, or backing a growing local business. It carries more risk than traditional assets but also the potential for higher rewards. The same IRS rules apply—you can’t invest in a company you or your close family personally benefit from—but the growth possibilities are wide open.

Learn more about private company investing in Self-Directed IRAs here at American IRA.

Limited Partnerships

Self-Directed IRAs can also participate in limited partnerships and joint ventures. These might include real estate developments, energy projects, or private funds. As a limited partner, your IRA earns a share of the profits without direct involvement in day-to-day management. This is one way investors gain access to larger-scale deals that might otherwise be out of reach individually.

Learn more about joint ventures and limited partnerships here at American IRA.

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.