Individual Investors

Real Estate

How to Purchase Real Estate in a Self-Directed Account

Due to its recession-proof qualities, real estate is one of the most popular alternative assets among investors, and can easily be purchased using a NuView account.

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The Benefits of Purchasing Real Estate Using Self-Direction

Real estate has proven to be a wildly popular and nearly recession-proof investment over the past century and beyond. Most people are unaware that they can invest in a tangible asset like real estate using their tax-sheltered IRA – that’s where NuView comes in.

A cash-flowing investment, such as real estate, is a great fit for a self-directed account. Say goodbye to capital gains, and hello to tax-deferred or tax-free appreciation and rental income!

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Single-Family Homes

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Commercial Property

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Apartment Buildings

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Unimproved Lands

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Condominiums

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Farm, Timber, Mineral-Based Property

Types of Real Estate That Can be Purchased Using an IRA

The Real Estate Purchase Process Is Simple

  1. Set up and fund a self-directed account with NuView Trust.

  2. Find a real estate investment to purchase inside your account.

  3. Complete and submit a NuView Purchase Authorization Packet and the contract to NuView.

Frequently Asked Questions About Real Estate

Your tenant(s)/borrower(s) are able to make payments via:

Wire Transfer: Same-day transaction. ($30 fee)
ACH: 2-3 business days (No fee)
Check: 5 business days hold. (Deposit code is required to waive the fee)

All checks should be made out to "NuView Trust Inc FBO (Client’s Name) IRA."

The short answer is, no. This would be considered a prohibited transaction. To learn more about prohibited transactions, click here

We do not recommend doing this. Please consult your financial advisor to learn the specific details behind such a transaction.

You may partner your NuView account with others, as long as it would not be considered "prohibited". You may also make allowable contributions, obtain debt financing through private sources or financial institutions on a non-recourse basis, arrange a seller carry back loan, sell other assets in your IRA to raise cash to make the purchase, transfer funds from other IRAs,  or rollover funds from qualified plans (such as 401(k), 403(b) or government 457 plans) you may have had at employers where you no longer work.  If you have a profit-sharing 401(k) plan where you currently work, you may be able to make in-service withdrawals and roll those to the IRA within 60 days. 

You have several options when purchasing real estate through your self-directed account. Including:

Cash – Your IRA pays cash for the entire property
Partnering – Your IRA can purchase fractional ownership in the property
Financing – Your IRA can mortgage real estate with a non-recourse loan

Please note that any property purchased in an IRA must be titled: NuView Trust FBO (For the Benefit Of) Your Name IRA. Once all closing documents are read and approved by the account holder or a designated interested party, NuView can execute the request and send funds to the closing within 48 hours. The IRA now owns the property.

IRA account holders invested in rental or leased real estate are encouraged to retain the services of a non-disqualified party to serve as a property manager to oversee rental property activities. A property manager may be able to respond to tenant or property emergencies and quickly pay for unexpected expenses. When an IRA owns real estate, the IRA must pay all expenses related to the property. If the IRA owns an undivided interest in the property, then the IRA must pay the pro-rata portion per its undivided interest. The IRA owner can direct NuView to pay the expenses by simply submitting a Payment Authorization Letter along with the invoice to be paid.

The IRS does provide rules about IRA holders and other “disqualified persons” as it relates to the usage of the property once purchased. These people, as defined in IRC Section 4975 cannot get a beneficial use from the IRA-owned property. Simply stated, they cannot use a vacation home on an interim basis between rentals, regardless of what rent they paid back to the IRA.

The IRA holder gets to make all the decisions - not just in the purchase process, but also in hiring the property manager, what to charge for rent, hiring subcontractors to rehab the property, negotiating contracts, or working with the property manager to screen tenants. With a self-directed IRA, the opportunity to take control is significant.

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Hear What Our Customers Say.

Susan

“I transferred my self-directed Roth IRA to NuView Trust. I dealt with Brian Martinez and found him very professional and very knowledgeable. The process was so much easier than with my previous custodian. The fees that NuView charges are much less than my previous custodian. I would highly recommend them.” -Susan

Bill

“My experience with NuView has been nothing short of excellent! They have been very responsive to my needs, always available to answer questions in areas that I am not the most knowledgeable and a good value. In short, they are a very well run organization looking to provide value add for their clients.” -Bill

Edith

“NuView Trust has been extremely knowledgeable guiding us in the use of self-directed IRA for investments purposes. They are professional, and easy to work with. A great asset to add to your team of trusted professionals.” -Edith

Diane

“I’m new to self-directed IRAs and to NuView and therefore have a lot of questions. The staff at NuView have provided prompt answers with a helpful and friendly attitude. And the turnaround time for check processing is amazing. I’m so glad I chose to partner with NuView.” -Diane