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Discover 12 ways to use your Roth IRA for a real estate investment property 

Taxes, Taxes, Taxes

In 2016 the Tax Foundation reports that Americans will spend more on taxes than on clothing, food, and housing combined. This year Tax Freedom Day was extended out into May for some states. That means millions of Americans are working the first 5 months of the year just to pay taxes. Many will work much longer. While it could be worse Tax Freedom Day comes earlier each year for those in India, Albania, and Australia. However, consider that in 1900 Tax Freedom Day was on January 22nd, with an average tax burden of just 5.9%. In 2015 that stretched to April 24th, with an average tax rate of 31%. Other taxes will certainly take a bite out of what is left over eventually too. At least unless we all have a plan.

Investing is crucial for getting ahead financially, yet without considering, and even prioritizing tax implications most will be leaving a lot of extra money on the table. That is thousands and perhaps millions of dollars unnecessarily handed over to the tax man.

Imagine you didn’t have to pay taxes on your real estate investment gains. How much more could you turn that capital into when you compound that money every year?

Tax Saving Investment Vehicles

By opening a new tax protected account, or converting an existing IRA or 401(k) plan to a self-directed retirement account individuals can enjoy tax deferred, or even free returns.

There are a variety of investment options, sectors, and ways to invest using self-directed retirement plans. This includes car paper, equipment leasing, structured settlements, and much more. One of the most commonly promoted asset classes for SDIRA investment continues to be real estate.

There are at least a dozen or more IRA real estate investment options.

Choices may incorporate:

  1. Rehabbing and flipping single family homes
  2. Acquiring income producing rental houses
  3. Buying duplexes, condos, and mobile homes as rentals
  4. Buying and holding vacant land and lots
  5. Investing in real estate purchase options
  6. Tax liens
  7. Mortgage note investing
  8. Buying or building precious metals storage property
  9. Partnering to invest in hotels, strip malls, and office buildings
  10. Acquiring shares of a REIT
  11. Investing in early stage real estate startups
  12. Funding land or purchasing rights for oil and gas, or gold exploration


There are many IRA real estate investment options with a Roth IRA that is self-directed. Doing so could save Americans millions of dollars in unnecessary taxes, while accelerating their income and wealth building. However, in addition to recognizing what types of investments are allowed in an IRA investors must also be alert to what investments are not allowed.

Of utmost importance is finding a reputable and efficient SDIRA custodian. Find one who will protect your tax savings and investment gains by helping you to stay within the regulations and complete all documentation accurately.  These are the services we provide at uDirect IRA Services, LLC.

Kaaren Hall udirect ira services llc self directed ira    

Authored by Kaaren Hall

Kaaren Hall founded uDirect IRA after 20 years in the banking, real estate, and property management industries. Kaaren has devoted herself to educating and enlightening investors on the necessity to utilize self-directed IRAs and can be found speaking at local events and real estate investor associations as well as hosting webinar where you can learn to earn more.

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