First, you need a self-directed IRA fund. As the name implies, all investment decisions using your IRA are made by you, instead of the IRA holder. But while you make all the decisions, you need a custodian to make investments on your behalf. Custodians are companies who manage the transaction and the paperwork. Custodians charge fees, of course, and they cannot give you advice, so you need to make yourself an informed consumer.
You aren’t limited to buying a house with your self-directed IRA.
Some investment examples of property types include:
- Vacant lots
- Parking lots
- Mobile homes
- Multifamily buildings
- Small businesses
- Boat slips