Allowed? Real estate agent commission for SDIRA purchase

5 Replies

I am pretty sure this not allowed, but it's worth quite a bit of money so I'll ask. I have my real estate license and I want to buy a property on the MLS for my self-directed retirement account. I assume that I cannot be the buying agent because the commission would be a direct benefit to me and I'm a disqualified person. Any alternate thoughts? Ideas? In my area if I don't take the commission the rest just goes back to the selling agent, not to the seller. I'm thinking I have to have another agent be the buy side agent (with no side deals).


you are correct, you are not allowed to receive any personal benefits directly or indirectly from the IRA (getting paid commissions) or provide any services to the IRA (agent representation).

Give this transaction to one of your fellow agents under your broker. 

@Shera Gregory At all cost separate yourself from the transaction. Have another broker represent you. And take no proceeds.

Thanks @Scott Matthew C. and Dmitriy F. That's what I thought. I think that there are probably a lot of agent/investors who may not consider this aspect for their own SD retirement accounts.

@Shera Gregory

You answered the question, @Dmitriy Fomichenko answered it, @Scott Matthew C. answered it, I also agree with you so it seems no matter how many times you ask the question the answer isn’t going to change. 

However I have seen brokers/agents reciprocate when they learn about the benefits of real estate in their Ira. 

Every once in a while I see some price negotiations go on right up to the closing day. I’ve seen the negotiated price change sometimes between like 1.5 and 3%. 

I represent some agents I know in transactions, and conversely I have some other agents represent me in some transactions. Usually we are doing this because of the exclusion in E&O insurance policies of when you sell or buy your own real estate. The same idea could be used for you with this manner. Give this transaction to one of your colleagues, and when they have a similar problem, or need to sell one of their properties and want another agent to do it, they can use you in return.

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