Real Estate in Retirement Accounts
Self-Directed IRA Real Estate Investing Guide
An SDIRA may access real estate through direct ownership, private mortgage notes, or real estate funds. Each route has different control, workload, liquidity, valuation, financing, and prohibited-transaction considerations.
Quick Answer
The IRA—not the owner personally—must own the asset, pay eligible expenses, and receive investment income. The owner and other disqualified persons generally cannot use the property, provide impermissible services, or personally benefit from it.
Three Ways to Gain Exposure
Direct Property
More control over a specific asset, with responsibility for custody, expenses, management, valuations, and liquidity.
Private Real Estate Notes
Income depends on borrower repayment, collateral, lien priority, underwriting, servicing, and enforcement.
Real Estate Funds
Pooled management may diversify loans or properties but introduces manager, fee, strategy, valuation, and redemption risk.
Operational Rules
- Title and contracts should reflect the IRA custodian for benefit of the account.
- Eligible expenses should be paid from IRA funds, and income should return to the IRA.
- Maintain adequate cash for taxes, insurance, repairs, custody fees, and distributions.
- Do not personally occupy or use IRA-owned property.
- Use qualified professionals before involving family members, controlled entities, services, or credit.
Financing and Tax Complexity
When an IRA uses leverage, financing is commonly structured without personal recourse to the account owner. Debt-financed income can create additional tax and filing considerations. Review the transaction with the custodian, qualified counsel, and a tax adviser before signing documents.
Risk Review
Evaluate property condition, market demand, tenant or borrower quality, insurance, environmental matters, leverage, lien priority, sponsor experience, reserves, fees, conflicts, exit assumptions, and downside recovery. Collateral can mitigate some risks but cannot guarantee repayment or prevent loss.
See the IRS prohibited-transactions guidance.
Compare Direct Ownership, Notes, and Funds
Review the current offering materials, confirm accredited-investor eligibility, and discuss account compatibility with your custodian and independent advisers before making a decision.
A Trusted Partner for Accredited Investors
Investor Resources
Self Directed IRA Guide
Learn how retirement accounts can access qualifying real estate and private-credit investments.
Real Estate Investment Fund
Understand how real estate debt funds pool capital and make collateral-backed loans.
Investment Calculator
Model illustrative cash-flow scenarios without treating estimates as guaranteed results.
Private Credit Strategies
Review the alternative lending strategies used by Mid Atlantic.
Why Invest With Us
Review the fund’s approach, underwriting discipline, and investor resources.
Investor Overview
Read the current overview before discussing eligibility or making an investment decision.
Important Information
This content is educational and is not individualized investment, legal, accounting, or tax advice. Mid Atlantic does not act as an IRA custodian and does not determine whether a particular retirement-account transaction complies with tax law. Consult an independent qualified professional and the account custodian before acting. Private placements are unregistered, illiquid, speculative, available only to eligible accredited investors, and involve risk, including possible total loss. Read the current offering documents before investing. Trust metrics are management-supplied and should be reviewed against current company materials.