How to Buy Real Estate


Description

In this session, I break down step-by-step how you can use a self-directed Roth IRA to buy real estate. I’ll walk you through opening the account, setting up land trusts, preparing funds, making offers, and managing properties – all in plain, brain-dead simple language. By the end, you’ll see exactly how to get started, keep it legal, and build long-term, tax-free wealth through your IRA.


Key Takeaways

  • You must have a self-directed Roth IRA to buy real estate with IRA funds.
  • Preparation is everything – set up your land trust and direction of investment before you even find a property.
  • The trust (not you personally) becomes the buyer on all contracts and deeds.
  • Open a bank account for the trust using funds sent from your IRA custodian – never from your own pocket.
  • Rental income, flips, or option fees all flow into the trust’s account, growing your IRA tax-free.
  • Each long-term property should have its own trust and IRA account for clean record-keeping.
  • This strategy gives you control, compliance, and flexibility to move fast on deals.


Action Steps / Exercises

  1. Open a Self-Directed Roth IRA – If you don’t already have one, contact a custodian like Carl’s team at CamaPlan and get it set up.
  2. Create a Land Trust – Use a simple trust form (like 5M Land Trust) and name it something fun and easy (e.g., Blue Sky Trust #1).
  3. Submit a Direction of Investment – Instruct your custodian to send a set amount (say $3,000) to your trust.
  4. Open a Trust Checking Account – Use that check to open a bank account in the trust’s name, with a trusted person (not you) as trustee.
  5. Practice Writing Offers – Draft sample purchase contracts with the trust as the buyer.
  6. Run the Cycle – Simulate how rent payments, repair costs, or a flip profit would flow through the trust account and back to the custodian.