Investing in RE through an SDIRAs

[Thomas McPherson]

Hi all, I would like to start the conversation and hear about other's experiences investing in Real Estate through their IRA. Here is a brief explanation on how to do it.

Key Steps:

1. Set Up an SDIRA: This allows you to invest in real estate directly. 
2. Pick Cash-Flowing Properties: Your IRA receives all rental income, tax-free!
3. Know the Rules:
   • No personal use – the property can’t be used by you or family.
   • All expenses/income go through the IRA.
   • Watch for UBIT tax – some income types can trigger it.

Tips:

• Non-Recourse Loans Only: If financing, make sure it’s non-recourse.
• Diversify: Mix property types, REITs, or loans within your SDIRA.

Anyone here investing in real estate through their IRA? Drop your thoughts below!

[John Bowens]

I like the step-by-step process, good for all SDIRA investors. 

I would add a step, that although is optional, is often used: 

Form an LLC, specifically for the use of IRA funds. IRA becomes the 100% owner of an LLC, or potentially multi-member LLC with multiple money sources, and the account owner of the IRA is the manager of the IRA owned LLC. You then create a bank account for the LLC. IRA funds LLC bank account and funds are deployed for investments and property held in the LLC.