Real Estate

Leverage your self-directed IRA toward this versatile investment option.

Purchase Real Estate with IRA accounts

Real Estate

icon-realestateMore and more people are starting to purchase real estate with IRA accounts. These individuals  have enjoyed both income and capital appreciation while diversifying their retirement portfolios and increasing control over their investments. You can invest in all types of real estate, residential or commercial, from raw land to single-family or multi-family homes, from building lots to vacation property, and even contracts for sale and lease options.

Buy real estate with your IRA account today! Contact an STC agent for more information

You can use cash to buy real estate, or you can employ a combination of cash and debt financing. If a project is too large for you to complete on your own, we can help you to pool your IRA investing money with other people’s IRA money and other people’s non-IRA money. Be sure to check with STC’s client services department when you contemplate entering into a complex transaction.

Purchasing real estate with IRA funds – Frequently Asked Questions


Real Estate Short Sales – Self Directed IRA Investment

Real Estate Short Sales – Self Directed IRA Investment

What is a short sale and what is required to execute one?

A short sale is a sale of real estate in which the lender agrees to accept less than what is owed to release their lien against the property. It may come in the form of a first lien on a home mortgage, a lien for a second mortgage or a Home Equity Line of Credit (HELOC). The 5 most common mistakes with regards to short sales include (1) avoidance of short sales altogether (2) not knowing when to walk away (3) not understanding how to prepare a submission package (4) inaccuracy in pricing the property (5) not knowing the state’s foreclosure law.

There are certain criteria that must be in place in order to execute a short sale and purchase real estate with IRA funds. The  lender must believe that they will receive more from the short sale than at an auction. The  lender cannot commit for a beneficiary or the note insurer without their prior approval. Also, the owner cannot afford to make the payments and has no other assets to satisfy the debt. With regards to the property, the property value must be less than the loan value.

To successfully execute a short sale, an orderly action plan  must be in place. The transaction must be pre-screened by using a preliminary title screen and judgment reports. A thorough knowledge and understanding of state foreclosure laws as well as preparation of a complete and accurate submission package is vital in order to ensure success in a short sale transaction. A complete submission package should include:

  • Valid purchase and sales agreement
  • Hardship letter written by the homeowner
  • Accurate income and expense summary
  • Hud 1 – Preliminary Settlement Statement
  • Broker’s Price Opinion (BPO) or appraisal
  • MLS comps and/or Recent Sales
  • Repair Estimates with pictures
  • Proof of Funds
  • Cover Letter

Are you looking to purchase real estate with IRA funds?Call an STC Representative today!

For more information please refer to our Webinar about short sales. Click here todownload the PDF. Click here to watch the webinar video.

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