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Self Directed IRA Investments

You might have that strong instinct of spotting the right investment opportunities in real estate or other asset classes, but you fail to reap the benefits. This is because you are not empowered to invest your limited savings in that asset class as traditional IRA’s limit the investment options. In a traditional IRA, the range of investment options is mostly limited to certificates of deposit, mutual funds, stocks or bonds.

On the other hand, a Self Directed IRA allows you to invest in a wide array of investment options, which if wisely managed can help you maximize your portfolio returns. The need to have a variety of investment alternatives really becomes apparent only when you see the value of your portfolio diminishing because of sudden the stock market crashes or the yields on corporate bonds have fallen to dismal levels. The host of investment choices that are available in a self directed IRA empowers an investor to leverage his knowledge and awareness to choose the one that looks most lucrative at that point in time.

Investment Choices offered by a Self Directed IRA

Real Estate
  • Residential
  • Lease Options
  • Commercial
  • Raw Land
  • Rentals
  • Foreclosures
  • New Construction
  • Renovations
  • Development
  • …and much more
Financial Paper
  • Mortgages
  • Loans
  • Charitable Entities
  • Tax Liens
  • Discounted Notes
  • Factoring
  • Start-ups
  • Retail
  • Professional
  • Public
  • Franchises
  • …and more
The Financial Markets
  • Stocks
  • Options
  • Bonds
  • Futures
  • Limited Partnerships
  • Mutual Funds
  • Annuities
  • Commodities


Real estate is one special asset class that is generally associated with Self-directed IRA’s. Investments in real estate through a self directed IRA is not limited to raw land, but can extend to apartments (residential or commercial), foreclosure properties and even tax liens. Tax liens are a real estate related investment and is imposed upon a property to secure the payment of taxes.

Besides real estate, under a self directed IRA you also have the option to invest in a private equity, limited liability companies, limited liability partnerships, private stock offerings, joint ventures, currency, options, annuities, futures and commercial papers.

Self directed IRAs do provide you a diverse range of investment options, but not all investments are allowed. Investing in precious gems or stones, antiques and life insurance is prohibited in a self directed IRA. You also cannot invest in a property which you personally own, like your home where you currently live or a vacation home or even a spare house that you have purchased. The spirit is to avoid transactions from an IRA with related parties.

Prohibited Transactions in a Self Directed IRA

If you are the investor with a true checkbook controlled self directed IRA, in order to ensure that all transactions done by the IRA are at arm’s length, there are certain transactions that are disqualified. As an owner and decision maker of the self directed IRA you are not allowed to borrow money from it, make commissions or make repairs. You are allowed to manage the property, vet the tenants and collect the rent. Also as the owner you are not allowed to use investments in your IRA as a collateral..

At Self Directed Retirement Plans LLC, we can guide account holders to make the most of the self directed IRA funds by making investment decisions that are profitable and are in accordance with the rules set up by the IRS.