He had turned his paper wealth into brick and mortar, proving that with the right custodian and a strict "hands-off" policy, you really can build a house out of an IRA.
Arthur found a duplex three miles away. The SDIRA was the buyer—not Arthur. "The check comes from the custodian," Sarah said. "The deed will read something like 'ABC Trust Company FBO Arthur’s IRA.' " Because Arthur had enough in his account to pay cash, the process was seamless. If he’d needed a loan, it would have had to be a , meaning the bank couldn't go after Arthur personally if things went south—only the property itself. Step 4: The Flow of Cash how to use ira to buy real estate
"Here’s the catch," Sarah warned, her pen hovering over the pad. "This isn't a beach house for you to sip margaritas in. The IRS says this is an , not a second home. You can’t live there, you can’t use it as an office, and you can't even pick up a hammer to fix a leaky faucet yourself. That’s 'sweat equity,' and the IRS hates it. You have to hire professionals for everything." Step 3: The Purchase He had turned his paper wealth into brick
The old blue prints on Arthur’s kitchen table were curling at the edges, much like his retirement plans. At sixty-two, the stock market’s roller coaster was giving him more heartburn than his favorite spicy chili. "The check comes from the custodian," Sarah said
Arthur leaned in. Over the next hour, Sarah sketched out the blueprint for his "Real Estate IRA." Step 1: The New Vault