IRA Custodian & RE Syndication

[Neil Ridens]

I recently used my Roth IRA through a custodian to flip a property and now have the cash just sitting in the custodian. Does anyone have experience with using a custodian to buy into a real estate syndication fund?

[Brian Eastman]

@Jack Martin

Mat is a very smart cookie, but he may have been going to fast or missed a detail. An IRA filing form 990-T may only utilize straight line depreciation as an offset to UDFI. Bonus depreciation cannot be used, though it is great for after tax investors.

While this conversation is interesting and @Charles LeMaire is "technically" correct, the wrong question is being asked and answered here.

I do not necessarily care if an investment I make in my IRA might be more favorable if done with non-IRA funds. That is an apples and oranges comparison.

What matters to me is "what is the best investment for my IRA, where I can obtain the best combination of low risk and consistently favorable returns?" If a leveraged real estate deal such as a multifamily syndication performs better than a non-leveraged all cash purchase of a single family rental, or better than what my IRA could do on Wall Street, then that leveraged real estate deal is the best place to put my IRA savings to work.