---
title: 3 Tips to Know When Buying Real Estate with Your Self-Directed IRA
description: One of the most beneficial aspects of buying real estate with your IRA are the tax benefits. Investors have been purchasing real estate with their SD IRA’s for decades and using the real estate as a tax-deferred investment growth vehicle.
image: https://blog.preferredtrustcompany.com/hubfs/Real-Estate-Self-Directed-IRA-Preferred-Trust-Company-1.jpg
---
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# 3 Tips to Know When Buying Real Estate with Your Self-Directed IRA
June 04, 2018
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One of the most beneficial aspects of buying real estate with your IRA are the tax benefits. Investors have been purchasing real estate with their SD IRA’s for decades and using the real estate as a tax-deferred investment growth vehicle. Preferred Trust Company provides three important tips for understanding the benefits of owning real estate through a self-directed IRA:
- When you [purchase real estate through your self-directed IRA](https://preferredtrustcompany.com/what-can-i-invest-in-alternative-investments/), all expenses associated with the property purchase must come directly from your IRA. This protects your investment from any unnecessary taxation. An Investment Authorization and Direction form must be completed (along with other applicable documents related to the purchase) and submitted to Preferred Trust Company prior to the release of funds for the purchase. Subsequently any expenses related to the property will require and Investment Expense Authorization form and the supporting invoice.
- Preferred Trust Company allows you to purchase real estate using your self-directed IRA anywhere in the United States. For example, an account owner residing in California can purchase real estate in Texas or Delaware with their Preferred Trust Company IRA; this allows you the freedom to diversify your investments in the markets that best suit your financial goals.
- Real Estate can be purchased to “fix and flip” or as an income producing rental property. All proceeds from the sale of the property or monthly rental income generated must go directly back to your IRA at Preferred Trust Company in order for it to remain a qualified investment and retain its tax-deferred status.
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©2023 Preferred Trust, LLC. Preferred Trust performs duties of a custodian and as such, does not sell investments or provide investment, tax, or legal advice. Preferred Trust is committed to safeguarding all non-public personal information provided to us by our customers. Preferred Trust collects, retains, and uses customer information where we reasonably believe that it will help administer our business or provide services to our customers. We collect and retain customer information only for specific business purposes and upon request will inform customers why we are collecting and retaining the information. PREFERRED TRUST, LLC “Preferred Trust” 6700 Via Austi Parkway, Suite 301, Las Vegas, NV 89119 888.990.7892 Financial Institutions Division of Nevada License No. TR10025.
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