Unlocking Real Estate Investments Through Self-Directed IRAs

Hello, savvy investors! Today, we're diving into a lesser-known but incredibly effective strategy for growing your retirement savings—investing in multifamily real estate through a self-directed IRA. If you're intrigued by the idea of funneling your retirement savings into tangible assets like real estate, this blog post is for you!


Disclaimer: This article is for informational purposes only and should not be considered as financial or tax advice. Always consult with a qualified financial advisor or tax professional before making any investment decisions.


What's a Self-Directed IRA?

A Self-Directed Individual Retirement Account (SDIRA) is a special type of IRA that gives you more control and flexibility over your investment choices. Unlike traditional IRAs, which limit you to stocks, bonds, and mutual funds, SDIRAs open up the possibilities for investing in alternative assets like real estate, all while offering the same tax advantages.


The Real Estate Dilemma

You might be asking, "How can I possibly save enough to invest in real estate?" Believe it or not, you may already have the funds you need—they might just be sitting in your existing retirement accounts. Many investors find that a significant chunk of their capital is tied up in these accounts, making it difficult to diversify into real estate.


Enter the Self-Directed IRA

Transferring a portion of your existing IRA or another retirement account into a self-directed IRA enables you to allocate those funds toward real estate investment opportunities. Here's how:


Steps to Get Started

  1. Open an SDIRA: Choose a custodian that specializes in real estate investments. Our team has built relationships with trusted SDIRA custodians like Alto IRA and Forge Trust, and we can assist you in selecting the best option for your needs.
  2. Fund Your SDIRA: Rollover tax-deferred funds from another retirement account to initiate your self-directed IRA.
  3. Submit a Direction Form: The custodian will provide a form for you to indicate your investment choices, directing them to allocate funds to specific real estate projects.
  4. Complete Paperwork: The custodian takes care of the administrative work and funnels the funds into your chosen real estate investment.
  5. Track Your Investment: You and your custodian will have access to all investment reports and updates, keeping you informed every step of the way.
  6. Enjoy Returns and Tax Benefits: Any income and appreciation from your investment are funneled back into your SDIRA and remain tax-deferred until you decide to withdraw the funds during retirement.


Note on Tax-Deferred Earnings and UBIT

While tax deferral is a substantial benefit of an SDIRA, be aware of the potential implications of Unrelated Business Income Tax (UBIT). If your investment involves debt financing, a portion of the income generated may be subject to UBIT. Always consult with a tax professional for advice tailored to your specific situation.


Why Choose This Route?

Many of our investors choose this strategy for investing in Gratūs Funds real estate projects. We've fostered partnerships with reliable custodians to help you navigate the process seamlessly. Opting for a self-directed IRA not only diversifies your retirement portfolio but also mitigates the risks associated with market volatility.


Ready to Take the Next Step?

If you're eager to explore this investment path further, we're here to help. Contact us to discover how a self-directed IRA can pave the way for profitable and stable real estate investments.

Interested? Reach out, and let's discuss the investment opportunities that await you.

Investing is simple. Here’s how.

Step 1:

Schedule a Meeting

To get started, simply book a 30-minute meeting with someone from our team. We’ll share a bit about the fund, answer any questions you have, and make sure your investing journey and our mission are in alignment.

Step 2:

Complete the Investor Info & Funding form

Once you have all your questions answered, fill out our online investment form. This  secure form gathers all the information needed for creating an account and funding your investment. It takes 10-15 minutes to complete.

Step 3:

Sit Back and Relax

Now that you’re in, you can sit by and watch your money work for you while we find, build, and manage properties for the fund. You’ll receive updates along the way as the fund continues to perform.