By John “Jack” F. Kiley, CPA, CISP
Managing Partner, MidAtlantic IRA, LLC
Did you know you can use your IRA, or even someone else’s, to invest in real estate? Self-Directed IRAs open the door to a wide range of opportunities beyond Wall Street. Here are six reasons why real estate belongs on your retirement investment radar:
1. Leverage What You Know Best
If real estate is your expertise, why not put it to work for your retirement? Traditional investments like stocks and mutual funds can feel like a mystery. But real estate is familiar territory—you understand the risks, the market, and the strategies. With a Self-Directed IRA, you can lean into your strengths instead of leaving your retirement savings in the hands of others.
2. Choose the Real Estate You Want
Contrary to popular belief, your IRA isn’t limited to publicly traded REITs. Through a Self-Directed IRA, you can invest in nearly any type of property, single-family homes, duplexes, apartments, commercial buildings, raw land, or even non-traded REITs. Want to buy that rental on Main Street? Your IRA can make it happen, whether your vision is broad (an entire market) or hyper-local (a single property).
3. Use Flexible Investment Structures
Real estate isn’t always purchased outright. Many investors use corporations, partnerships, or LLCs to hold property. The good news: your IRA can do the same. You can even own a partial interest in a property, opening the door to joint ventures and diversified deals without needing to buy 100% of the asset.
4. Harness the Power of Leverage
Yes, your IRA can borrow money. While the rules are more complex (and professional guidance is essential), it’s possible for your IRA to use non-recourse loans to acquire property. This allows you to combine your retirement funds with financing, essentially putting “other people’s money” to work inside your IRA.
5. Apply Any Real Estate Strategy
Your IRA isn’t limited to buy-and-hold rentals. You can wholesale, rehab, invest in tax liens, purchase notes, or even acquire rights to timber, minerals, or gas. The same strategies you already use in real estate can be applied within your IRA, offering tremendous flexibility.
6. Work with Your Trusted Team
Over time, you’ve likely built a team of brokers, appraisers, title companies, and contractors you trust. The good news? You can continue to use that same network when investing through your IRA. With familiar professionals at your side, you’ll have confidence in the due diligence, acquisition, and management process.
The Bottom Line:
Self-Directed IRAs put the control back in your hands. If you understand real estate, why limit your retirement savings to Wall Street? By using your IRA to invest in property, you can combine your expertise, trusted team, and proven strategies to build wealth for the future.