Use a self-directed IRA to buy rental homes, apartment buildings, or raw land. The presenter funded a 650-unit self-storage facility through a Roth SDIRA with Horizon Trust as custodian. You must follow strict rules: no personal use, no self-management, no rentals to family, and all cash flows go through the IRA.
Want to own real estate using your retirement account? With a self-directed IRA, you can. Self-directed IRA, or SDIRA, lets you go beyond stocks and bonds to invest in things like rental homes, apartment buildings, raw land, or hotels and motels. That means your IRA could legally own part of a motel just minutes from the Las Vegas Strip, earning tax-deferred or even tax-free income depending on whether it's a traditional or Roth SDIRA. But this strategy isn't without rules. You can't stay in the property. You can't manage it yourself. Or rent to close family. All income and expenses must flow through the IRA or you risk penalties and disqualification. You'll need a custodian that specializes in SDIRAs and understands real estate deals. I chose Horizon Trust to be the custodian for my Roth SDIRA when I invested in a 650-unit self-storage facility. Investing with an SDIRA can be a smart way to diversify your portfolio and build long-term wealth. Follow for more real estate insights and remember, there's a big difference between investing and gambling.
