Real Estate


An Equity Institutional 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. Equity Institutional's Real Estate Direction of Investment Form 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 cleared funds are available within the Equity Institutional account to make the purchase and all items shown on our Real Estate Direction of Investment Form have been received by Equity Institutional.

An Equity Institutional 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 855-355-ALTS (2587).

Holding Debt-Financed or Leveraged Real Estate

Equity Institutional permits the holding of debt-financed real estate which is subject to a non-recourse promissory note issued by a corporate lender or by the seller of the property.  Equity Institutional will only process debt-financed real estate in IRAs.

In considering whether to invest in real estate through your Equity Institutional IRA utilizing Debt Financing, here are some important points to keep in mind:
  • Be sure to obtain Equity Institutional's Real Estate Direction of Investment Form prior to executing a contract or setting a closing date.  There are items you will need to provide to Equity Institutional prior to setting a closing date.
  • As you may be aware, IRA investment real estate transactions typically are all cash deals; however, debt-financed transactions are also possible through the use of a non-recourse loan to the IRA.
  • Equity Institutional will hold debt-financed property in an IRA only with the use of a non-recourse promissory note issued by a lending institution or by the seller of the property.
  • An IRA accountholder cannot personally guarantee the non-recourse promissory note. The lending institution or seller of the property can only look to the property securing the note as collateral.
  • Debt-financed property may generate Unrelated Business Taxable Income ("UBTI"), and any tax due must be paid by the account. For more information regarding UBTI, please consult your tax advisor.
For more information please contact 855-355-ALTS (2587).

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Lending Institutions Which May Offer Non-Recourse Loans:

American Money Loan Services
1740 Dell Range Blvd., H135
Cheyenne, WY  82009
Main:  800.261.2212
Fax: 231-225-0424
Lighthouse Commercial Mortgage
Vernon L. Morrison

3380 Tremont Rd., Suite 220
Columbus, OH 43221
Toll Free: 888.474.2603
Fax: 614.481.6080
First Western Federal Savings Bank
402 Main Street
Rapid City, SD 57701
Phone: 800.908.8845 or 605.341.1203
Fax: 605.394.0084
North American Savings Bank
Matt Allen, Account Executive—IRA Lending

903 E 104th Street, Ste 400
Kansas City, MO 64131
Phone: 866.735.6272
Fax: 816.508.2497
The Norris Group
1845 Chicago Ave, Ste C
Riverside, CA 92507
Phone: 951.780.5856
Fax: 951.780.9827

NOTE: By clicking any of the links above you are leaving Equity Institutional’s website.

The list above represents institutions which may offer non-recourse financing. Each will have their own standards and requirements that you must meet. Equity Trust Company nor it's affiliates receive any remuneration from any of the above listed institutions. This list is being provided as a service to you and should not be construed as an endorsement or recommendation and is intended for informational purposes only. This is not meant to provide financial, tax, legal or other professional advice or recommendation. You are encouraged to seek professional advice regarding these matters.

For more information please Contact Us.