Did you know that you can use your self-directed IRA account to invest in real estate? Its true! The money sitting in your IRA can be making money for you in the real estate business, rather than the stock or bond market. In the stable Oklahoma real estate market, that can make for a far better investment than in the more volatile stock market, and offer potentially better returns than bonds or government securities. The IRS allows you to hold real estate investments in your IRA portfolio. This can include single family homes, commercial property, land, and even condo’s.
The critical factor is that the investment must be in the name of your IRA – not your own name. All rents, deposits, expenses, and maintenance must go into and come from your IRA account. You can only invest a maximum of $5,000 per year into the account, and cannot withdraw money without penalty until you are 59 1/2.