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How To Purchase Real Estate Notes in an IRA

Interested in Learning How to Purchase Real Estate Notes in an IRA?

Scenario #1: Purchasing Real Estate Notes in an IRA

Once you have established your IRA account and you have decided to purchase a real estate note in the IRA. To complete the purchase of the asset:

  1. You will need to provide us with a copy of the note you wish to purchase and a direction of investment form.
  2. On the form, you will tell us how much money to send, what you are purchasing and where to send the funds (either an address of where to mail a check or wiring instructions).
  3. We will sign all of the appropriate documents to complete the purchase on behalf of your IRA.
  4. All payments made on the note will come to your IRA cash account here at Sunwest Trust.
purchasing Real Estate Notes in an IRA

Buying a Real Estate Note in an IRA

Scenario #2: Buying Real Estate Notes in an IRA LLC

If you have an IRA LLC established with Sunwest Trust:

  1. You will purchase the note in the name of the LLC and sign all the documents on behalf of the LLC as a manager of the LLC.
  2. You are not required to report the purchase to Sunwest Trust at the time of the note purchase.
  3. Instead, notify Sunwest Trust – the custodian of the IRA LLC – in this case, that you own the asset when you fill out your annual asset valuation worksheet.
  4. Any income received from the real estate note investment must go directly back into your IRA LLC checking account to avoid the mishandling of funds and a prohibited transaction.

Interested in learning about other viable real estate IRA alternatives that can be housed in your IRA retirement account? Stay tuned to our blog and YouTube channel for more information.

Terry White

About Terry White

I started my business career after getting my degree in Accounting from the University of New Mexico in 1983. My first job was as a controller for a local title company, and in 1987 I started First Financial Escrow, Inc. Over the years I played a part in several startup companies including First Financial Equities, Inc., First Financial Trust, Inc., First Financial Marketing, Inc. and Asset Ventures, Inc. In 1997 First Financial Escrow, Inc. was able to purchase the escrow accounts from Sunwest Bank and changed its name to Sunwest Escrow. As the market changes, Sunwest has grown and changed along with it. Besides my wife, Sheila, we have three boys, two daughters-in-law, one grandson, another grandson on the way and a future daughter-in-law. Sunwest is my passion, and I enjoy coming to work every day to see what will happen next. I enjoy fly fishing, spending time in Colorado, biking and watching my boys play soccer.