Your Roth IRA Called. It Wants to Buy a House.
Forget stocks. Your IRA can own real estate, collect rent, and grow tax-free.
Let’s start with the real shocker:
You can own rental property inside your Roth IRA. And the IRS is totally fine with it.
Not only that—you can build long-term, tax-free wealth while most people are out here crossing their fingers and “hoping the market recovers” before retirement.
So why isn’t everyone doing this?
Because nobody told them they could.
Until now. 💅
🔍 First Things First… What’s an SDIRA?
SDIRA stands for Self-Directed IRA, which is just a fancy way of saying:
“I want to invest in more than just Wall Street rollercoasters.”
Unlike your typical retirement account that limits you to:
- Stocks
- Bonds
- Mutual funds (zzzz)
…a Self-Directed IRA lets you put your retirement money into alternative assets, including:
✅ Real estate
✅ Private notes
✅ Gold
✅ Private placements
✅ Even crypto
Translation: You get to be the boss of your own money. 💼
💥 Enter the Roth Twist: Tax-Free Forever
Now imagine this:
You buy a rental inside your Roth SDIRA.
The rent comes in, the value grows, and none of it is taxed. Ever.
Because Roth = already-taxed money.
So all your growth? Tax. Free. Forever.
It’s like legal tax evasion. Except, you know… actually legal.
💡 Why This Strategy Is a Game-Changer
1. All the Growth, None of the Tax
Let’s say your Roth IRA buys a $200K rental.
It appreciates to $350K over 10 years, and you collect $10K/year in rent.
That’s $150K in value + $100K in income = $250K of growth.
And how much of that does Uncle Sam get?
👉 Zero.
2. Built-In Asset Protection
Retirement accounts are often protected from lawsuits and creditors.
Your SDIRA real estate can’t be touched by someone trying to sue you personally.
It’s like putting your wealth in a fortress surrounded by moats, lasers, and a moat with sharks.
3. More Control Over Your Retirement
You’re not relying on the market.
You’re not at the mercy of fund managers or wild economic swings.
You’re choosing the asset, vetting the deal, and setting the terms.
Control = confidence.
🧠 Important Rules (Because the IRS is Watching)
This is where it gets spicy. The IRS says yes… but with strings. Here’s what you need to know:
🚫 You Can’t Use It for Personal Benefit
- You can’t live in the house.
- Your spouse, parents, or kids can’t use it.
- No vacation home. No Airbnb side hustle for yourself.
This is for retirement investment only—not a weekend getaway.
💸 You Can’t Pay for Stuff Out of Pocket
All expenses—repairs, property taxes, management—must be paid from the IRA.
All income? Goes back into the IRA.
So you’ll need:
- Enough cash in the account for startup/ongoing costs
- A custodian that allows real estate investing
🤝 No “Disqualified Persons” Allowed
You can’t buy from, sell to, or pay your spouse, kids, or parents with your IRA funds.
No sweetheart deals. No backdoor flips.
Keep it clean, keep it compliant, or the IRS gets cranky.
🛠️ Pro Tips to Do It Right
✅ Work with an SDIRA Custodian
You can’t just use Fidelity or Vanguard. You need a custodian that specializes in alternative assets (think: Equity Trust, Quest, New Direction, etc.).
✅ Do Your Due Diligence on Deals
Just because you can buy anything doesn’t mean you should. Run the numbers like always.
✅ Have Reserves in the IRA
Don’t buy property with every last cent. You’ll need cash in the account to cover:
- Repairs
- Property taxes
- Management fees
- Emergency plumbing at 2 a.m. (your IRA pays, not you!)
✅ Use a Property Manager
Unless your custodian allows you to coordinate things directly (many don’t), you’ll need someone else managing the property. You’re not allowed to do the work yourself.
🔁 Can You Use Leverage?
Yes—but carefully. You can use non-recourse loans only. That means:
- The lender can’t come after you personally
- The property is the only collateral
Be aware: leverage inside an IRA may trigger UDFI tax (Unrelated Debt-Financed Income). Not always a deal-breaker, just something to plan for with a savvy tax pro.
🎯 So, Who’s This Strategy Perfect For?
✅ Investors who want to play the long game
✅ Anyone with an old 401(k) or IRA they want to roll over and reinvest
✅ People who want to grow massive wealth without paying massive taxes
✅ Those who want to diversify outside of Wall Street
✅ Smart folks who like the phrase: tax-free for life
💬 Bottom Line
If you’re parking your retirement funds in mutual funds and praying for 7% returns, you’re missing out.
Your Roth IRA doesn’t have to be boring. It can buy houses. Flip contracts. Fund notes. Build passive income.
And do it all without giving the IRS a single dime.
Now that’s what we call a real deal.
🚀 Want Help Setting It Up?
Our team can walk you through:
- Finding a self-directed custodian
- Rolling over an old account
- Finding real estate deals that fit inside your SDIRA
👉 Join our next free intro session and see how to turn your Roth into a real estate cash machine.
