Real Estate in an IRA

A Sterling Trust self-directed IRA provides the flexibility to invest in real estate such as raw land, commercial buildings, condos, residential property, rental property or vacant lots. When considering an investment in real estate, individuals should thoroughly understand the important aspects before purchasing property in a retirement account. Sterling Trust's Real Estate Direction of Investment Form and Real Estate FAQ contain information to help with this step. You and your clients may also be interested in discovering more about Holding Debt-Financed or Leveraged Real Estate.

Once a decision is made to purchase real estate and the property is identified, any offers and/or contracts must specify the purchaser name as the IRA custodian, for benefit of the individual's IRA account.

Additionally, it's essential that the closing date not be set until the Sterling Trust account has sufficient funds in the money market account to make the purchase (see Sterling Trust's Closing Instructions for Sale of Real Estate), and all items shown on our Real Estate Direction of Investment Form have been received by Sterling Trust. 

A Sterling Trust self-directed IRA or Solo 401(k) opens more options for investing retirement dollars.  However, as with any investment, due diligence is extremely important.  To understand the in's and out's of holding real estate in your IRA or Solo 401(k), please refer to our Real Estate FAQ, or call us at (800) 955-3434.