Real Estate IRAs Getting Started
How do you buy Real Estate in an IRA?
Purchasing Real Estate in Your IRA
This is one of the most common questions that Entrust receives.
Purchasing real estate in your IRA isn't that much different from a normal purchase of an investment property. There are a few exceptions, but this is the basic process:
- Open an account at Entrust Freedom, and fund the account through a contribution, transfer, or rollover.
- Identify the investment property that you wish to purchase with your IRA. Make sure that the property adheres to all of the rules of Self Directed IRAs, and will not be a prohibited transaction.
- Complete a Buy Direction Letter that is supplied by Entrust Freedom.
- Review and approve all closing documents. For example, check that correct titles are on all documents—e.g., “Entrust Freedom, LLC FBO [Your Name] IRA# ”
- Ensure that all income and expenses pertaining to the property flow through the IRA.
When you're ready to sell the property, Entrust Freedom provides the necessary paperwork and works with you and your title company/closing attorney to complete the transaction. All proceeds from the sale are tax free, and go back into your IRA.