Most people think of IRAs as a place for stocks, bonds, and mutual funds. That’s the default assumption under which too many retirement investors live. But what if you could use that same account to buy real estate? And what if you could do it without paying additional taxes on the rent, without paying capital gains when you sell, and without paying transaction fees every time you move money around?
That’s exactly what some investors are doing with Self-Directed IRAs. And it’s changing the way they think about retirement. When you combine real estate with tax advantages and full control over your investments, you get a powerful tool that goes way beyond traditional retirement planning. Let’s explore
Why Real Estate Belongs in a Self-Directed IRA
What is the biggest appeal of real estate in a self-directed IRA? Tax treatment. Rental income flows into your account tax-deferred (or tax-free if it’s a Roth). And when you sell a property, those gains stay inside the IRA with no immediate tax bill. Over time, that can mean significantly more growth compared to a taxable account where you’re paying the IRS every year.
It also opens the door to consistent cash flow. Properties that generate monthly rental income can help build your account balance faster. And since the income isn’t taxed as it comes in, the effect compounds over time. You’re essentially using a legal structure to stretch your money further.
This setup also lets you diversify. If your other retirement accounts are tied up in stocks or index funds, adding real estate through a Self-Directed IRA gives your portfolio another layer of protection. Real estate doesn’t always move in sync with the stock market, which is a helpful cushion in uncertain times.
How to Stay in Control and Avoid Fees
One of the most frustrating parts of real estate investing, especially through a traditional IRA, is the gatekeepers. A lot of gatekeepers can stand between you and your property. Even with a Self-Directed IRA, you may need to get approval for every transaction. Every payment might come with a fee. And timing can be an issue when a custodian slows the process down.
That’s where checkbook control enters the fray. By setting up your Self-Directed IRA as an LLC, you can gain direct access to your retirement funds through a dedicated bank account. Instead of calling your custodian every time you want to write a check, you just…write the check. That kind of control makes a huge difference when you’re dealing with things like earnest money deposits, contractor payments, or quick-close deals.
It also helps you avoid the usual pile of transaction fees. With checkbook control, you’re not being charged for every wire, document, or fund transfer. You’re managing your IRA like a business account, which is exactly what it becomes once the LLC is formed. The custodian still handles the backend paperwork and compliance, but you handle the day-to-day.
We’re not saying that you have to structure things this way to invest in real estate. But if you want a low-maintenance, low-fee way to invest in your retirement—and you want some flexibility as you do it—then this can be a great approach. Ideally, you’ll work with an administration firm that can handle your questions, help you get set up, and introduce you to the paperwork you need to pull it off without a hitch. Just give us a ring here at TurnKey IRA by dialing 844-8876-IRA (472). We’ll help you build an account you can use for years.
Want to know more, or maybe kickstart the process of opening your Checkbook IRA? There’s no time to get started like the present. Contact TurnKey IRA at 844-8876-IRA (472) for a free consultation. Download our free guide or visit us online at www.turnkeyira.com.
