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Updated 1 day ago on . Most recent reply presented by

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Robert Ellis
  • Developer
  • Columbus, OH
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Has Anyone Used a Self-Directed IRA for Real Estate Investing?

Robert Ellis
  • Developer
  • Columbus, OH
Posted

Hey everyone,

I've been looking into using a Self-Directed IRA (SDIRA) for real estate investing and wanted to see if anyone here has experience with it.

From what I’ve learned, an SDIRA lets you invest your retirement funds into real estate (among other things), but it seems like there’s a lot to keep in mind. For example, navigating the IRS rules around prohibited transactions sounds tricky.

A few questions I have for anyone who’s used an SDIRA for real estate:

  1. What types of deals have you used an SDIRA for? Single-family, multi-family, or commercial?

  2. What’s been your biggest challenge when it comes to using an SDIRA for investing?

  3. Have you worked with any custodians that you’d recommend, or any that were a pain to deal with?

  4. How do you handle things like tax benefits or using SDIRA funds to scale your portfolio?

Would love to hear what you all have learned and what’s worked (or not worked) for you.

Looking forward to your thoughts!

  • Robert Ellis

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Joe Homs
  • Flipper
  • Mission Viejo, CA
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Joe Homs
  • Flipper
  • Mission Viejo, CA
Replied

@Robert Ellis I've been investing and currently invest with my 401K for the last 10 years.  However make sure it a TRUE self-directed account that you have total control over.  Reach out to @Dmitriy Fomichenko to set one up.

  1. What types of deals have you used an SDIRA for? Single-family, multi-family, or commercial?  Mine have all been Single-Family flips.
  2. What’s been your biggest challenge when it comes to using an SDIRA for investing?  None, after I found the True self-directed account.
  3. Have you worked with any custodians that you’d recommend, or any that were a pain to deal with?  Yes, they are all a pain, and I would never work with them again.
  4. How do you handle things like tax benefits or using SDIRA funds to scale your portfolio?  The greatest tax benefit that you have is that you don't pay taxes on any profits that you make until you retire or start drawing funds.  You can't write anything off in this type of investment.  The goal here is to have enough money saved up for when you do retire and not rely on Social Insecurity.
  5. Good Investing...

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