Real Estate IRA Allowable Activities

Jul 17, 2018

real estate ira

What activities may the owner of a Real Estate IRA perform?

Owning Real Estate in an IRA, HSA, or Solo 401(k) can be a great way to earn tax-deferred or tax-free money. Many Real Estate IRA accounts grow larger than classic stocks, bonds, and mutual funds IRAs. 

When investing in Real Estate, IRA investors are allowed to do the following:

Investors are always allowed to perform administrative IRA investment functions. Examples of administrative activity:

  • Select the investment property
  • Read and review documents
  • Determine the plan; is this for buying and renting?
  • Is rehab work necessary? What is the extent and type of work required?
  • Hire people to perform the labor supervising the project
  • Select the tenant
  • Collect rent
  • Track income and cost


In addition, your IRA can partner with other entities (at the beginning of an investment only).  If you, personally, are a partner, benefits must always be “percentage invested = percentage of benefit.” If an IRA invests 42% of the money, for example, your IRA receives 42% of the benefit. Your IRA may partner with another IRA, another individual, or in yourself. 


For information about the Self Directed IRA or Solo 401k, call IRA Club at 312-795-0988

IRA Club offers no investments, products, or planning services. Therefore, please consult your attorney, tax professional, financial planner, and any other qualified person before making any investments.