: The IRA is a separate legal entity. All income (like rent) must go directly into the IRA, and all expenses (like taxes and repairs) must be paid from the IRA. Key Rules and Prohibited Transactions

: You cannot buy from, sell to, or lease property to yourself or "disqualified persons," including your spouse, parents, children, or their spouses.

: You cannot perform any manual labor or repairs on the property yourself, even something as small as fixing a leaky faucet.

Buying real estate with an IRA allows you to diversify your retirement portfolio beyond traditional stocks and bonds by holding tangible assets like rental properties, commercial buildings, or raw land. This is typically done through a , which provides the flexibility to invest in alternative assets while maintaining tax-advantaged growth. Core Requirements

Violating these IRS rules can result in the immediate disqualification of your IRA, leading to massive taxes and penalties.

: The property must be held strictly for investment purposes. Personal use—such as vacationing in the home or using it as a primary residence—is strictly prohibited.

Invest in Real Estate with a Self-Directed IRA - IRAR Trust Company

: Traditional brokerage firms usually do not support physical real estate. You must open an account with a specialized Self-Directed IRA custodian .