Real Estate in your IRA in 2023

Real Estate in your IRA in 2023

Real Estate IRA Investing in 2023

The stars are aligning for real estate investing in your IRA, and it is never to be better than it is in 2023.

One of the main reasons we have seen an increase in real estate IRAs in 2023 is the increase in mortgage rates. Typically in a self-directed IRA, properties are cash purchases, rarely with mortgages. Therefore, self-directed IRAs don't have to deal with higher mortgage rates making their purchases much easier.

As with any asset class, real estate ebbs and flows. As it stands now, higher rates have slowed the number of purchases and increased the inventory, giving investors a unique opportunity to find deals in the investment and commercial real estate space. 

While prices have increased in the real estate space over the past few years, an increase in inventory works to bring prices back down. If you are a real estate investor, now is the time to use your self-directed IRA.

What are the benefits of buying real estate in your IRA?

Some of the benefits of purchasing real estate in a self-directed IRA include

  • All gains inside the IRA or tax-free and not subject to reporting

  • Cash purchases are typically easier and sometimes better to negotiate with

  • All income and expenses flow through the IRA so growth happens in a tax-free environment

  • All types of IRAs can purchase Real Estate (Traditional, Roth, SEP) so you are offered this alternative option regardless of the type of IRA you hold

Can I use other retirement plans like a 401k to buy real estate?

Any type of retirement account can own an alternative asset like real estate. Learn more about the various type of retirement accounts that can hold alternative assets. 

How do people buy real estate in their IRA?

The three most common ways investors purchase real estate in an IRA are through entire ownership, partnership, or in an LLC.

  1. You can make a real estate purchase with the IRA taking deed to the property at 100%.

  2. You can own a percentage of real estate with your IRA and the remainder with personal funds or with other partners. There are no requirements as to how much you own in your retirement fund. The only thing you need to understand is income and expenses will be split the same way the ownership is split. 

  3. You can use your IRA to purchase a partnership or LLC interest which ultimately buys the real estate.

What types of real estate do people buy with their IRA? 

In our experience, the most common types of real estate purchased in a retirement account include

  • Single-family rentals
  • Investment condominiums
  • Commercial real estate
  • Multi-tenant real estate
  • Land or single-family lots
  • Tenants in common interests

Real estate really is a great opportunity right now in a self-directed IRA. If you'd like to learn more about investing with your self-directed IRA, please contact Midland IRA at 239-333-1032 or click here to visit our new Midland Real Estate IRA Central.

Written by: Dave Owens is the CEO of Midland IRA and an advocate for Alternative Asset Investing. Midland Trust is an employee-owned company.  To learn more about Midland, go to

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