Username:   Remember Me

Uber Articles {Über (ger) adj. above, beyond }

- Above and Beyond a Mere Article Directory


Should I Buy My House With My IRA?

By John Coktostin

It is possible to invest your IRA in real estate, but there are some things you should consider. The IRS does not allow investing your IRA in life insurance or collectibles such as art work, memorabilia or gems. Using your IRA to invest in real estate is possible, but not necessarily easily done.

First off, you need to create a self directed IRA. You also need to get an independent custodian for that IRA. There are trust companies, brokerages and other financial institutions that will do this, so check around.

Doing a web search for “self directed IRA custodians” can help you locate some. Check into their services and fees so you know exactly what you will be getting. Make sure to find out what their insurance coverage is – you want your assets to be protected!

Some of these custodians can also help you invest in other kinds of investments such as stocks and bonds and mutual funds. Make sure you know the rules for the investment. Make sure you know up front exactly what will be provided with their services.

A few custodians will go as far as collecting rent from the property. Others won’t. For these kinds of IRA investments it’s best to avoid any high maintenance properties.

There are some other rules to consider as well. You cannot invest in any property that will be used as your residence or vacation home. You also cannot buy, rent or lease from a spouse, parent or child.

For mortgaged property, most of your gains will still be taxable.You will probably lose any tax break advantages given to homeowners as well. Make sure to consult a tax professional about these matters.

When considering a real estate investment for your self directed IRA, remember to figure in the costs of property management and custodian fees. Also remember to figure in the tax changes. If you will soon need liquid assets, this plan may not be right for you. Look at all sides of this investment before jumping in.

NAFEP (The National Association of Financial and Estate Planning) is a leading provider of self directed IRA and self directed 401k products, administrative and custodial services.

Article kindly provided by

Topics: Investing | Comments Off

Tags: , , , ,

Article Citation
MLA Style Citation:
Coktostin, John "Should I Buy My House With My IRA?." Should I Buy My House With My IRA?. 12 Jul. 2010. 25 Sep 2014 <>.

APA Style Citation:
Coktostin, J (2010, July 12). Should I Buy My House With My IRA?. Retrieved September 25, 2014, from

Chicago Style Citation:
Coktostin, John "Should I Buy My House With My IRA?"

Reprint Rights

Creative Commons License
This article is subject to a revocable license under a Creative Commons Attribution-No Derivative Works 3.0 Unported License, which means you may freely reprint it, in its entirety, provided you include the author's resource box along with LIVE VISIBLE links (without "nofollow" tags). We may revoke the license at any time with or without cause. You must also include the credit to

Comments are closed.

Uber Articles and its partner sites cannot be held responsible for either the content nor the originality of any articles. If you believe the article has been stolen from you without your permission, please contact us and we will remove it immediately. If you have a problem with the accuracy or otherwise of the content of an article, please contact the author, not us! Also, please remember that any opinions and ideas presented in any of the articles are those of the author and cannot be taken to represent the opinions of Uber Articles. All articles are provided for informational purposes only. None of them should be relied upon for medical, psychological, financial, legal, or other professional advice. If you need professional advice, see a professional. We cannot be held responsible for any use or misuse you make of the articles, nor can we be held responsible for any claims for earnings, cures, or other results that the article might make.
  • RSS Feed

    RSS for Investing

  • Plugin UAW into your sites and start receiving fresh, unique and niche relevant content today and everyday!