Self Directed IRA

What is it?

The self directed IRA is an alternative to take your retirement security out of the hands of Wall Street and put it into real property. 

How does it work?

Instead of asking your stock broker to secure your future, you can consult a Realtor to find a property to add to your investment portfolio. Just as if you were buying a property for yourself, you search for properties, go out to look at them, analyse the return on investment, make a competitive offer, and perform inspections. When it comes time to close, a trust company will wire your IRA money to complete the sale. Your IRA can be used for all the purchase related costs, repairs, and improvements. After closing, the property is ready to rent and start bringing in a return.

What are the Benefits?

  • It's tangible
  • The value will never be zero
  • It can generate income in any economy
  • You know exactly what you're buying
  • You get the same tax benefits of a traditional IRA
  • The property is held in a trust and protected from personal liabilities

Why do it?

In addition to the advantages, you can get into real estate investment even if you don't have the cash on hand. You can take back some control over your future. Lastly, I will help you through the process. I currently own property with a self-directed IRA. I understand the process, the advantages, and the disadvantages. 

What are the disadvantages?

Being a Realtor for over 20 years, I know that real estate markets can also be volatile. This is not a short term, liquid, or "guaranteed safe" investment. Profitability is tied into the real estate resale and rental markets. It requires additional time, primarily to find a property and manage the property or work with a property manager. You cannot live in the property or rent it to family.

More Info

Below are links to a few companies that provide self-directed IRA services. I hold property under Pensco Trust and recommend them. The latter are among dozens you can find in a basic search, but each website has useful educational materials.

Pensco Trust Company

The Entrust Group

New Direction IRA

What's Next?

If you're interested in investing your IRA into real property, please use the contact link above. I'll share with you my experiences and get you connected to a representative at Pensco or you can choose your own. I look forward to hearing from you!