Use Your Retirement Account to Buy Real Estate?

How Can I Use My IRA or 401(K) to Buy Real Estate?

Short answer: Yes, you can.

Better question: Why aren’t you already doing it?

Millions of Americans have retirement accounts just sitting in Wall Street’s waiting room—while real estate, the #1 wealth-building tool in history, is standing outside waving.

🔁 Enter the Self-Directed IRA or Solo 401(K)

To buy real estate, you need a self-directed retirement account—not your typical Fidelity or Vanguard setup. These accounts allow you to invest in:

• Rental properties

• Flips

• Notes

• Land

• Private placements

🧠 Here’s How It Works:

1. Rollover your IRA or 401(K) into a self-directed version

2. Find a custodian who handles real estate transactions

3. Buy in the name of your IRA, not your own

4. All income goes back into the IRA, tax-deferred (or tax-free with a Roth)

🧨 Watch Out For:

• No “self-dealing” (You can’t live in, rent, or work on the property yourself)

• No transactions with disqualified people (like spouse, parents, kids)

• All expenses must be paid by the IRA

✅ Pro Tip:

Solo 401(K)s often allow loans to yourself—up to $50,000. It’s a backdoor way to fund deals without touching your bank account.

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