Using a SEP IRA to invest in a Real Estate Syndicate

Member since 2024 · 2 posts · 0 votes

Hi,

I am planning to invest $100,000 into a real estate syndicate. Is it better to make this investment from my SEP IRA, or should I make the investment outside of my retirement account? I think I remember Tom Wheelwright saying never put a tax shelter investment inside another a tax shelter.

Thanks for your input.

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Jeff Nash

Accountant · McKinney, TX · Member since 2023 · 394 posts · 580 votes

If possible, I would consider a self-directed Solo 401K over a SEP and then consider your options. If you think you can get a great return with a syndication compared to other alternatives, then go for it. The other respondents gave options to consider as well.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Scott Spector:

Hi,

I am planning to invest $100,000 into a real estate syndicate. Is it better to make this investment from my SEP IRA, or should I make the investment outside of my retirement account? I think I remember Tom Wheelwright saying never put a tax shelter investment inside another a tax shelter.

Thanks for your input.

Depends on the syndication. If it is a debt fund, I would consider using my SEP IRA but if it's a multifamily deal that takes leverage, then I would use cash. Note these are just my personal opinions and not providing tax or legal advice.
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Steve Smith
Member since 2020 · 217 posts · 167 votes
2y
First, I'd take that SEP IRA and convert it to a Roth IRA (self directed).

Like others I'd NOT buy and real estate IN the Roth. Use the Roth to buy an option on property so you can control more property that you are investing. Have the real estate owned by someone your trust
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Jeff Nash
Accountant · McKinney, TX · Member since 2023 · 394 posts · 580 votes
2y
If possible, I would consider a self-directed Solo 401K over a SEP and then consider your options. If you think you can get a great return with a syndication compared to other alternatives, then go for it. The other respondents gave options to consider as well.
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