Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago on . Most recent reply

User Stats

10
Posts
8
Votes
Shaun Inniss
  • Rental Property Investor
  • Houston, TX
8
Votes |
10
Posts

Acquiring cash flowing properties through IRA

Shaun Inniss
  • Rental Property Investor
  • Houston, TX
Posted

I'm a new investor who just opened an self directed IRA. Any suggestions on the first steps to acquiring properties via my IRA?

Most Popular Reply

User Stats

823
Posts
844
Votes
Michael Wagner
  • Specialist
  • Victor, NY
844
Votes |
823
Posts
Michael Wagner
  • Specialist
  • Victor, NY
Replied

One thing to look out for is UBIT (Universal Business Income Tax)....Any Investment you make in your IRA that also has leverage attached to it will open you up to UBIT...this will be painful so should be avoided in most cases (unless the ROI is so good it justified incurring a tax inside a tax sheltered account).

This doesn't come into play if your IRA is lending money but only if you are buying ownership in a property. I prefer to use my IRA money for strictly lending purposes for this reason and I use my Solo401K (which can be structured to function as a REALLY BIG Roth account known as a Mega BackDoor Roth) with contribution limits of $56K per spouse per year to actually buy investments. The solo401K is not subject to UBIT even if leverage is used. Note this only applies if you have a business where you and your spouse are the only employees. Sorry for the tangent, just thought some might appreciate this complimentary strategy.

  • Michael Wagner
  • Loading replies...