Buying Real Estate In an IRA

Every now and then someone will ask me whether they can buy real estate in an IRA.  The short answer is “yes”.  But, the long answer might convince you not to.

First of all, investing IRA funds in real estate means that it must be a cash transaction where the IRA owns 100% of the asset (Unless it is in a REIT, TIC or something like that, but then you lose control).  The real estate must be titled in the name of the IRA and the IRA most likely cannot get a loan from a bank.  In addition,