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  • Randy Rodenhouse

Investing in real estate with your IRA


  • There is NO legal distinction between self directed IRAs and any other IRA except that a self directed IRA allows the broadest possible spectrum of investment choices.

  • SDIRAs have been around since the IRA was established in 1974.

  • When setup correctly or when using a proper SDIRA custodian you are allowed to invest not only in stocks and bonds, but also in real estate, notes, private placements, syndications and much more.

  • The potential benefits of a self directed IRA is that you are able to invest your tax-advantaged retirement dollars in investments you know and understand.

  • I love SDIRAs especially the ROTH SDIRA since there are many benefits like: 1) getting tax-free growth 2) you can take tax-free withdrawals in retirement 3) you decide when, if, and how to take withdrawals.


There are a few rules one has to follow when investing money from your IRA. We will talk briefly about prohibited investments and prohibited transactions. This is not an all inclusive list, but some of the main things to keep in mind. Read my book “IRA & 401K Income Builder” for more details and consult a SEC attorney and your tax advisor before investing.

  • Prohibited Investments

    • Can’t invest in collectibles such as antiques, cars, art, etc.

    • Can’t invest in life insurance.

  • Prohibited Transactions

    • Selling property to IRA you already own – self dealing

    • Buying property for personal use

    • Borrowing money from IRA

    • Can’t use IRA as collateral (i.e. security for loan)

    • No personal guarantee - for example, no signing personally for a loan

  • What Can You Invest In (some examples below)?

    • Single Family Homes

    • Apartments and Commercial RE

    • Raw Land

    • Tax Liens/Tax Deeds

    • Mortgage/Deed of Trust Notes

    • Private Equity

    • Precious Metals (Gold/Silver)

    • Commodities (Oil, Gas, Grains, etc)

    • LLCs and C Corporation

    • Car Notes

    • Commercial Notes

    • Private Placements and Stock Offerings

    • Equipment Leasing

    • Factoring

    • Structured Settlements

    • Stocks and Bonds…

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