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Grow Your Retirement Savings with Multifamily in a Self-Directed IRA
Learn how you can invest in multifamily properties with a self-directed account.
Posted on May 12, 2022
What is a Self-Directed IRA?
Simply put, a Self-Directed IRA is a retirement account that lets you take control and invest in the broadest spectrum of assets. Like normal IRAs, Self-Directed IRAs also have tax advantages that allow earnings to grow tax-deferred or tax-free and compounds over time, maximizing growth in the account. Additionally, certain IRAs allow you to reduce your taxable income by taking tax-deductions. The difference between a regular traditional IRA and a truly “self-directed” IRA is the types of assets they hold.
What Can an IRA Invest In?
Self-Directed IRAs offer a few more investment options than typical IRAs, one of these options being private placements, like multifamily. A Self-Directed IRA can be used to purchase almost any private asset. Common investments include single family real estate, rehab properties, commercial and multifamily real estate, private loans, performing and non-performing notes, oil and gas, land, startup companies, LLCs, and other private businesses.
More About Private Entities
Private placements are investments in privately owned companies, rather than public companies. A few examples of private placement investment opportunities include those with:
- Multifamily
- Limited Liability Companies (LLC)
- C Corporations
- Start-Ups
- Small businesses
- Limited Partnerships (LP)
- Hedge Funds
- Land Trusts