Self-Directed IRA Real Estate
Build generational wealth through real estate and avoid taxes that detract from compound interest.
A self-directed IRA (SDIRA) lets you use your retirement funds to invest directly in real estate with either tax-deferred (Traditional SDIRA) or tax-free (Roth SDIRA) growth.
Whether you’re flipping properties, managing rentals, or wholesaling deals, self-directed IRA real estate allows you to build wealth strategically without the taxes that slow your compounding gains.
Horizon Trust facilitates transactions involving different investment groups to help investors find real estate opportunities in their geographic area. We also offer free biweekly webinars, eBooks, and loads of online content dedicated to helping you maximize your wealth with real estate in a self-directed IRA.
Real estate investments are available to all self-directed accounts from Horizon Trust, including Traditional and Roth SDIRAs, a SEP IRA, SIMPLE IRA, or Solo 401(k).
Why Invest in Real Estate with a Self-Directed IRA?
- Tax-Deferred or Tax-Free Growth: All profits, including rental income, appreciation, and capital gains, remain sheltered within your IRA until distribution (Traditional IRA) or are entirely tax-free in a Roth IRA.
- Inflation-Resistant Asset: Real estate values and rental income often rise with inflation, preserving your purchasing power over time.
- Consistent Cash Flow: Income-producing properties like rentals or commercial spaces generate consistent monthly revenue directly back into your IRA.
- Diversification Beyond the Market: Real estate moves independently from stocks or bonds, reducing volatility and balancing your retirement portfolio.
- Greater Control Over Investments: Unlike traditional retirement accounts managed by fund managers, self-directed IRAs let you choose, manage, and grow assets you understand best, like property.
See How Real Estate Can Grow Inside Your IRA—Tax-Advantaged
Discover how to use a self-directed IRA to invest in real estate while keeping rental income and profits tax-deferred or tax-free.
5-Star Rated Custodian
What Types of Real Estate Can You Buy in an IRA?
A self-directed IRA offers nearly unlimited real estate investment opportunities, as long as they comply with IRS regulations.
Single-Family or Multi-Family Rentals
Commercial Real Estate
Vacation or Short-Term Rentals
Raw Land or Agricultural Property
Real Estate Syndications & Joint Ventures
Mobile Home Parks or Storage Units
Tax Liens and Deeds
Open and Manage SDIRA Real Estate in 4 Simple Steps
Contact Horizon Trust today to learn more about opening your Self-Directed IRA or converting an existing retirement account.
At Horizon Trust, we believe in turning dreams into reality. Founded by Greg Herlean, who has masterfully managed over $1.3 billion in real estate transactions, our mission is to empower you to take control of your financial destiny using the tax-free advantages of a Self-Directed IRA. Retire wealthy.
Here’s how it works:
STEP 1
Open and Fund Your Self-Directed IRA
Set up your Traditional or Roth self-directed IRA and fund it through a transfer, rollover, or new contribution.
STEP 2
Identify a Property
Find the property that aligns with your investment strategy. You can work with real estate agents, auction houses, or private sellers.
STEP 4
Reinvest or Take Distributions
Proceeds from rent or property sales stay within your IRA to grow tax-deferred or tax-free. You can take distributions once you reach retirement age.
STEP 3
Direct the Purchase
Once you’re ready to buy, Horizon Trust executes the purchase on behalf of your IRA. (Bypass this with checkbook control).
Disclaimer
Horizon Trust Company is an independent passive Custodian and is not associated or affiliated with and does not recommend, promote or advise any specific investment, investment opportunity, investment sponsor, investment company or investment promoter or any agents, employees, representatives or other of such firms or entities. Investments are not FDIC Insured, offer no bank guarantee and may lose value.
Proven Success. Trusted Leadership. Real Impact.
At Horizon Trust, we make it simple to open and manage a Self-Directed IRA, so you can take control of your retirement on your terms. Founded by Greg Herlean, who has overseen more than $1.3 billion in real estate transactions, Horizon Trust was built by someone who understands what self-directed investors need: personalized service, fast transactions, and a custodian that stays out of your way.
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Learn About Self-Directed IRA Real Estate
Important Rules for Real Estate IRAs
While self-directed IRAs offer flexibility, they also have specific rules to maintain tax-advantaged status. Breaking these rules can result in a 15% penalty of the amount involved for each year.
No Self-Dealing
You cannot buy or sell property to yourself, a spouse, parents, children, or any “disqualified person.”
No Personal Use
You or your family cannot live in or use the property owned by your IRA.
Expenses and Income Must Flow Through the IRA
All rent, repairs, taxes, and maintenance must be paid from your IRA account—not from personal funds.
Use Non-Recourse Loans Only
If financing is needed, it must be a non-recourse loan. The lender’s only collateral is the property itself.
UBIT May Apply
If your property generates business income or debt-financed income, your IRA may be subject to Unrelated Business Income Tax (UBIT). Consult a tax advisor for guidance.
These rules ensure your investment remains compliant with IRS guidelines while maintaining its tax benefits.
Tax Advantages of Real Estate IRAs
The tax structure of self-directed IRAs offers enormous potential benefits for real estate investors:
- Traditional SDIRA: Contributions are typically tax-deductible, and all gains grow tax-deferred until withdrawal.
- Roth SDIRA: Contributions are made with after-tax dollars, and all future earnings and qualified withdrawals are 100% tax-free.
- Depreciation Advantages (Indirectly): While you can’t personally claim depreciation, the property’s income and appreciation remain sheltered within the IRA.
These tax advantages make real estate one of the most effective long-term retirement investment strategies available for meeting your retirement goals.
What Is Real Property?
Real estate and/or real property includes non-traditional assets, such as single-family and multi-unit homes, apartment buildings, co-ops, condominiums, improved or unimproved land (leveraged or unleveraged), commercial property, and more.
Real estate purchased in a self-directed IRA can have a mortgage placed against the property, thus lowering the amount of total cash needed for a purchase. Business investments may include partnerships, joint ventures, and private stock.
If your IRA doesn’t have enough money to pay for the entire purchase, you can finance or leverage any income-producing property. The property is used as collateral for the loan. Because the property belongs to your IRA, the debt must be repaid from assets within your IRA, whether it’s income from the property, permissible contributions, or other assets in the IRA. All real property is either purchased or sold for your benefit using your Qualified Plan and/or IRA funds.
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Trusted by investors nationwide to take control of their retirement through Self-Directed IRAs.
Helping clients grow and protect wealth across real estate, crypto, and private investments.