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.