With a self-directed IRA, you can purchase investment property and distribute it later for personal use. You can even use your account to purchase the perfect home for your retirement years. You'll need to buy the property through your IRA, which will own the property as an investment until you retire. Many IRAs are based on investments such as stocks, bonds, and mutual funds.
However, self-directed IRAs (SDIRA) allow investors to increase their retirement accounts with alternative assets, such as private equity, private placements, precious metals and, of course, real estate. An important reason why retirement account investors don't usually borrow money (also called debt or leverage) as part of a real estate investment or acquisition is that section 4975 of the Internal Revenue Code prohibits an IRA holder (you) from personally securing a self-directed IRA loan.
