How to Use Your SDIRA or Solo 401k to Buy Real Estate

Most investors don't realize their retirement account can be one of the most powerful real estate investing tools available. If you have a Self-Directed IRA or Solo 401k, you may be sitting on capital that can be put to work in real estate — completely within IRS guidelines.

What is a Self-Directed IRA?

A Self-Directed IRA (SDIRA) works just like a traditional or Roth IRA, except it allows you to invest in alternative assets like real estate, rather than just stocks and mutual funds. You control the investment decisions, and all income and gains flow back into the retirement account tax-advantaged.

What is a Solo 401k?

A Solo 401k is a retirement plan designed for self-employed individuals or small business owners with no full-time employees. Like an SDIRA, it can be self-directed to invest in real estate.

What is a Non-Recourse Loan?

When your SDIRA or Solo 401k buys real estate with financing, it must use a non-recourse loan. This means the lender can only claim the property itself as collateral — not your personal assets or retirement account funds. This is an IRS requirement for retirement account real estate investing.

What Types of Properties Can You Buy?

Single family rentals, multifamily properties, commercial real estate, and condos all qualify. The property must be purely for investment — you cannot live in it or use it personally.

Key Rules to Know

The retirement account must be the buyer — not you personally. All income from the property goes back into the retirement account. All expenses must be paid from the retirement account. You cannot personally manage the property or do repairs yourself.

Why This Strategy Makes Sense

Real estate inside a retirement account grows tax-deferred or even tax-free in a Roth structure. Combined with rental income and property appreciation, this can be an incredibly powerful long-term wealth building strategy.

How Jordan Lev Mortgage Can Help

We specialize in non-recourse loans for SDIRA and Solo 401k real estate investments nationwide. We understand the unique requirements of retirement account lending and will guide you through the process from start to finish.

Call 717-586-5144 or submit your scenario at jlwmtg.com to get started today.