Real property or real estate includes raw land, pre-development, commercial, residential, etc.
Property can be owned directly by the IRA or the IRA can hold an interest in an LP/LLC that holds title to real property or an interest in real estate investment trusts.
Why does my current IRA brokerage firm say I can’t buy real estate in my IRA?
Custodians determine the type of assets they will hold and may not choose to hold all assets the IRS allows. Life insurance contracts and collectibles are the only investment types prohibited by the IRS as an IRA investment. On their website the IRS states “…..because of administrative burdens, many IRA trustees do not allow IRA Owners to invest IRA funds in real estate. IRA law does not prohibit investing in real estate but trustees are not required to offer real estate as an option.” So, just because your broker doesn’t offer real estate as an investment doesn’t mean that you can’t do it; it just means that you can’t do it through them.
Are there restrictions on the type of property that my IRA can purchase?
No. As long as it is an investment, your IRA can purchase any type of real estate (raw land, pre-development, commercial, residential, etc.). Investments in foreign property must be reviewed by Polycomp Administrative Services, Inc. to determine if it is administratively feasible to hold prior to making an offer.
Will Provident Trust Group, LLC hold real property?
Yes. Provident will hold direct title to real property, in addition to interests in Limited Liability Companies (LLC) or Limited Partnerships (LP) that hold title to real property; notes secured by trust deeds/mortgages; and interests in real estate investment trusts (REITs).
Real Property FAQs
Real Property Requirements
Non-Recourse Loan Requirements