Disclosure: This is not a public offering. This is not an offer or invitation to sell or a solicitation of any offer to purchase any securities in the United States or any other jurisdiction. Any securities may only be offered or sold, directly or indirectly, in the state or states in which they have been registered or may be offered under an appropriate exemption.

7 Rules for Investing in Real Estate with a Self-Directed IRA*


  1. Your IRA cannot purchase property owned by you – you can’t purchase a property you already own.
  2. You cannot indirectly benefit from a property owned by your self-directed IRA – No vacation homes or cheap office space.
  3. Real estate IRA investments must be uniquely titled – Any documents must be titled to your IRA, not to you.
  4. Real estate in your IRA can be purchased without full funding from your IRA.
  5. IRA investments that use financing must pay unrelated business income tax.
  6. Real estate expenses must be paid from your IRA – including property taxes, utilities, maintenance, improvements, etc.
  7. Real estate IRA income must go back into the IRA.


*courtesy of Equity Trust (www.trustetc.com)

3 Most Popular Ways to Invest in Real Estate with a Self-Directed IRA


  1. Buy with cash – if you have enough to cover the purchase price, closing costs, taxes, insurance, etc. Remember, any ongoing expenses will also need to come from the IRA.
  2. Partner up – with a friend, family member, business associate (that’s me!). Use your IRA to purchase an undivided interest in the property. Any expenses or income (rent) will be proportional to your contribution percentage. So if you contribute 30% to the purchase, you will owe 30% in any fees or receive 30% rent.
  3. Borrow money – An IRA can obtain a loan or mortgage for a real estate investment. The loan must be non-recourse (uses the property for collateral) and tax is due on the profits from the leveraged real estate.
For investors, it’s all about the returns. The higher the returns, the better the investment decision. I want to tell you about a way that you can earn double-digit returns by self-directing your IRA.
Most investors who have a retirement asset like an IRA may be familiar with companies such as MetLife, Merrill Lynch, Fidelity and others. Those companies manage your money through traditional broker dealers by investing in things like stocks, bonds and mutual funds. While these investment choices can be somewhat stable, they don’t guarantee double-digit returns. At best, you can expect slow, incremental growth. While that’s not bad, there is a better way.
By self-directing your IRA, you can double your growth through tax-free profits, tax deductions, asset protection and estate planning.
What does it mean to self-direct your IRA or 401(k)?
When you self-direct, you are not relying on an investment advisor to sell you products; you find your own assets and invest through your own research. This allows you to build lasting, long-term wealth by investing in things you’re comfortable with because you have knowledge or experience in it. Through self-directing your IRA, you can expand or supplement traditional retirement investments through assets such as real estate, notes, foreign currency, tax liens, and more.
Here’s the catch. The IRS requires a third-party custodian for self-directed IRAs. Choosing the right custodian is crucial. One that I can recommend is Equity Trust (www.propertiesclique.com). Equity Trust is made up of a team of experts who have been helping investors realize significant growth for over 35 years. The key is they not only will manage your growth, but limit your tax exposure, which is as big a benefit.
Equity Trust manages $3 billion in IRA assets for 40,000 clients. Having the right people on your team is key – I’ve said this over and over. In this case, it can mean the difference of thousands of dollars.
Choosing to invest in real estate allows you to earn tax-free/tax-deferred returns on your investment. Combining the knowledge of a custodian with a sophisticated, active real estate investor like myself will lead to returns that you would never be able to realize in the traditional investment routes.

Take a look at the case studies in this issue for just a couple of examples of high investment returns through real estate investing. Then, call me to find out how to start growing your IRA today!

ADDRESSING THE NEEDS OF MODERN INVESTORS IN LOUISIANA, ENSURING A SUCCESSFUL, PROFITABLE (FUTURE)