What Types of Real Estate Can a Self-Directed IRA Hold?

A self-directed IRA may hold certain types of real estate, including residential rental properties, commercial properties, vacant land, and other eligible real estate assets. Rental income and sale proceeds must be deposited into the IRA, while property-related expenses must be paid using IRA funds.

Key Requirements for Holding Real Estate in a Self-Directed IRA

Property Types: A self-directed IRA may hold eligible residential, commercial, vacant land, and other qualifying real estate.
IRA Ownership: Real estate must be properly titled to reflect ownership by the IRA.
Income & Expenses: Rental income and sale proceeds must be deposited directly into the IRA, while eligible property-related expenses must be paid from IRA funds.
Prohibited Transactions: Account owners and other disqualified persons generally cannot personally use or receive prohibited benefits from IRA-owned property.

How Real Estate works in your Self-Directed IRA

Select Your Property: Identify and research the property, including applicable costs, ownership requirements, potential risks, and prohibited transaction restrictions.
Complete & Submit Purchase Instructions: Complete the Mountain West IRA Real Estate Purchase Kit and provide contact information for your realtor, title agent, and lender (if applicable). Review the purchase agreement and applicable closing documents, marking them "Read and Approved" with your signature and date before submitting them to Mountain West IRA. All purchase documents must identify the IRA as the buyer. Do not sign where the buyer's signature is required, as Mountain West IRA signs on behalf of the IRA.
‍Transactions Department
Phone: (208) 510-0859
Email: transactions@mwira.com
Administrative Review & Authorization: Mountain West IRA reviews the submitted documentation for administrative requirements and coordinates any necessary corrections or additional information. Once requirements are satisfied, an authorized signer executes applicable documents on behalf of the IRA.
Complete the Purchase: Provide all required closing documents, insurance information, and earnest money or funding instructions at least three business days before the requested funding date. Once complete and correct documentation and sufficient funds are received, Mountain West IRA processes authorized payments at the account owner's direction and coordinates the necessary documents with the title company.
Maintain Your Property: Rental income and sale proceeds must be deposited directly into the self-directed IRA, and eligible property-related expenses must be paid from IRA funds. Maintain sufficient IRA funds for property taxes, insurance, maintenance, and other expenses.

Getting Started With Your Self-Directed IRA

Follow the steps below to establish and fund your self-directed IRA, submit asset purchase instructions, and understand ongoing account requirements.

Complete Your Starter Kit. Select the appropriate account application below. To request electronic signature documents, email accounts@mwira.com or call (208) 314-2580.

Traditional IRA Starter Kit

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Roth IRA Starter Kit

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SEP Starter Kit

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Individual 401(k) Plan Starter Kit

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SIMPLE IRA Starter Kit

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Health Savings Account (HSA) Starter Kit

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Traditional IRA Starter Kit

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Roth IRA Starter Kit

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SEP Starter Kit

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SIMPLE IRA Starter Kit

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Precious Metals Foreign Currency Starter Kit

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Individual 401(k) Plan Starter Kit

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Health Savings Account (HSA) Starter Kit

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Fund Your Account. Fund your account through an eligible transfer, rollover, or contribution, depending on the account type and your circumstances.

Submit Your Purchase Instructions. Complete the appropriate transaction forms and provide any required supporting documentation to Mountain West IRA for administrative review.

Maintain Your Asset. Any income or proceeds generated by IRA-owned assets must be deposited into the IRA, and eligible asset-related expenses must be paid from IRA funds. Mountain West IRA provides ongoing administrative and recordkeeping services and processes authorized transactions at the direction of the account owner.

Understanding Real Estate in a Self-Directed IRA

Explore our Real Estate IRA Guide to learn about holding residential, commercial, and raw land properties in a self-directed IRA, prohibited transaction rules, and the documentation required for property purchases.

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What To Know About Real Estate In A Self-Directed IRA

Personal Use: You and other disqualified persons cannot live in, vacation at, or personally use IRA-owned property.
Income & Expenses: Property income must be deposited into the IRA, and property-related expenses must be paid from IRA funds.
Financing: IRA-owned property may be purchased using qualifying nonrecourse financing, which can trigger UBIT/UDFI. Consult your tax professional.

Why Choose Mountain West IRA?

Experience Since 2006: Providing self-directed retirement account administration and recordkeeping services since 2006.

Client-Directed Administration: You choose the assets held within your account. We process transactions at your direction and maintain account records.

Alternative Asset Experience: Our team has experience administering accounts that hold a wide range of allowable alternative assets.

Educational Resources: Access guides, videos, webinars, and other resources to better understand self-directed retirement accounts.

Personalized Support: Get responsive assistance with account establishment, administration, and transaction processing.

Frequently Asked Questions

Can I Buy Real Estate With A Self-Directed IRA?

Yes. A self-directed IRA can hold eligible residential rental properties, commercial real estate, raw land, and certain real estate syndications. Property income and expenses must flow through the IRA, and the property cannot be used personally by the account owner or other disqualified persons. Mountain West IRA provides administrative and recordkeeping services.

Can I Live In Or Personally Use A Property My Self-Directed IRA Owns?

No. IRS prohibited transaction rules generally prohibit you and other disqualified persons, including your spouse, parents, children, and their spouses, from personally using or benefiting from IRA-owned property. This includes living in the property, vacationing there, or using it for personal purposes.