FAQ – Investing Your IRA funds in Real Estate

Real Estate Investing With a Self Directed IRA

Diversify the investment options in your IRA to maximize earnings. Real Estate is a great way to do this and STC can show you how.

Can I really invest my retirement assets in real estate?

Absolutely! In 1974, the Employee Retirement Income Security Act (ERISA) gave all self-directed retirement plans this option. In addition to real estate, you can direct your IRA investments into – among other things – mortgages, notes, tax liens, and private businesses. There are, of course, restrictions on some investments, but STC will help you navigate through them.

Why haven’t I heard about this opportunity before?

Brokerage companies earn commissions when you buy and sell stocks, bonds, and mutual funds. They don’t make money when you buy real estate. Further, very few banks or trust companies are interested in holding “non-traditional” assets they don’t understand. STC is one of only a small handful of companies that provides “full service” to self-directed retirement plan beneficiaries.

Are there any pitfalls to self directed ira plans?

There are many potential pitfalls with respect to both prohibited transactions and timely reporting at the state and federal levels. For example, engaging in a “prohibited transaction” can cause the favorable tax status of your IRA to be forfeited. STC’s specialty is structuring transactions in ‘safe harbors’ to avoid such problems and ensure statutory compliance.

Who makes the plan’s investment decisions?

You do. Your account is truly “self-directed,” which means that you make the investment decisions for your retirement assets in much the same way as you invest outside of your retirement plan. But you don’t invest alone. STC will help you navigate the complex rules that govern prohibited transactions so you can focus on making the best investment decisions.

How are my assets managed?

Your assets are co-managed by you and STC. You make all investment decisions, and we take care of all of the paperwork and the reporting details. Once you make an investment, STC will keep your books and records, coordinate the custodianship of your assets, oversee the annual asset valuation, and file all required annual reports.

What specific services does STC provide?

STC provides two such clusters of services: First, we establish the retirement plan structure that affords you the opportunity to take advantage of true asset diversification. Secondly, we provide the full administration of your retirement plan assets, including providing you with periodic statements. STC is truly a “full service” provider.

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