Self-Directed IRAs and Real Estate Syndications

Just in the past two weeks I have had more than five investment partners ask me if they can use their Self-Directed Investment Retirement Accounts (SD-IRAs) to invest in our commercial real estate offerings, so I thought I would answer this great question once and for all and provide some important detail. First and foremost, the answer is YES, you can use your SD-IRA to invest in commercial real estate, including syndications. The primary benefits of using an SD-IRA for real estate investments include portfolio diversification, favorable tax treatment and efficiencies in your estate planning.?

At NARRATE HOLDINGS , many of our investors exclusively invest with us using their SD-IRA account. Real estate syndications allow our investors with SD-IRAs to pool their capital with us and our other investment partners and participate in real estate properties and private equity opportunities much bigger than they could afford or manage on their own. However, with any investment vehicle, there are some nuances to keep in mind, and as always, please discuss any investment with your trusted advisors and accountants prior to making the investment.?

• All expenses associated with investment must be paid using the funds in your SD-IRA account and all revenue much go back to the SD-IRA account.??

• The investment is made by the IRA, not you, so it’s important to remember to title the investment appropriately.??
• The investment should not constitute a prohibited transaction, i.e., you cannot invest with a “disqualified person.”??
• Although not specific to SD-IRAs, it’s always important to keep in mind that real estate investments typically have a 3–5-year maturity, during which time the capital is fairly illiquid.?

NARRATE HOLDINGS , based out of Denver, CO, is one of the West’s most experienced and disciplined vertically integrated real estate and private equity firms specializing in the investment and development of multi-family and mixed-use properties, and opportunistic investments in other non-real estate private equity opportunities. We are an experienced, disciplined team of professionals that share a similar, yet diverse set of expertise within the real estate and private equity industries with goal as an operator and investment manager?to source opportunities that provide long term, stable wealth for our investors, while continuing to improve upon an internal process that strives to continuously mitigate downside risks. If you are interested in becoming an investment partner with us and exploring our opportunities, please register through our investor portal or contact me anytime to facilitate a detailed discussion.