To do so, you also need what’s called a “self-directed IRA,” which requires a third-party IRA custodian—a financial institution that makes sure your investment follows IRS and government regulations at all times. Otherwise, all investing decisions are yours alone (a self-directed IRA also lets you directly invest in cryptocurrency, precious metals, LLCs, and REITs). Really what you’re doing is holding onto the property while you have the IRA, as technically the property is owned through the IRA itself. For that reason, a self-directed IRA is probably best for people who already have some experience in managing or investing in property. For more on the finer details on self-directed IRA accounts, and how to open one, check out this Nerdwallet post.

Source: The Nation September 20, 2021 12:45 UTC