Skip to Content

Finance Your Investment Property with a Self-Directed IRA

A lot of people would like to invest in a Raleigh investment property. However, they believe that it would cost them a lot of money in doing it. They are not aware that gaining funds for a rental property purchase is not as difficult as it may seem.

To make this happen, there are two main aspects to take note of. The first aspect to take into account is your about Individual Retirement Account (IRA). You can invest your self-directed IRA in mutual funds, bonds, or real estate, or a variety of other ventures. This gives you room for portfolio diversification. Not only that, but you also get to have an investment that doesn’t link with stocks or bond prices. Second, you can buy real estate using leverage as you take a mortgage out. You gain all the appreciation and long-term rental price inflations from the property investment despite investing only 20% toward the property’s all expenses. With the proper purchase and handling and the right Raleigh investment property, you could reclaim all your operating costs, plus the mortgage, through the cash your tenant pays to you.

Individual Retirement Account (IRA)

At this point, create an account with an IRA custodian. You can set up your account with Community National Bank, Equity Trust, IRA Services Trust Company, or others that you can find on Google. Your existing IRA or even your rollover 401K, minus the tax penalties, can fund your new IRA account. Once you select a

Raleigh investment property, give your custodian a direction of investment form, ask for approval, and request the funds. The property’s title must be under the name of your IRA. As a result, the custodian then holds title to assets and issue funds.

The total expenses and revenue associated with your investment must be made through and delivered to your IRA custodian account. As you get ready to sell your property, proceeds from the sale stay in your IRA. With that, taxes on profits and appreciation are postponed to the future when you start drawing funds from your IRA.

One problem in having a self-directed IRA to buy a Raleigh investment property is that you cannot solely manage the property. You must be with a professional like Real Property Management Excellence to help you. You get to pay your IRA custodian for the up-front fees or ongoing maintenance fees. Reliant upon your IRA portfolio value, these fees may come in a couple of hundred dollars per year to a couple thousand. The marketplace has never been this competitive so you must scrutinize multiple custodians for their fees, service levels, and credentials.

If you plan to create a real estate investment portfolio, your IRA may provide the funds that you need. Know your balance and find out how real estate could fit within your overall investment portfolio. If all make sense, hire the ideal IRA custodian and put your plans into reality.  You will then be proud of yourself during retirement since you trusted your gut in venturing one of the most stable investments now – real estate.

If you would like more information about our property management services, please contact us today.


We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details