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Real Estate


As the IRA owner, am I authorized to be a signer on the property management checking account?

If you want to have “checkbook control” over your property, you may elect to open an IRA LLC.


Can I invest in a Real Estate Investment Trust (REIT) with funds from my account?

Yes. Real Estate Investment Trusts (or REITs) are one of the many real estate options you can invest in through your Forge Trust Co. individual retirement account.


Can I invest in tax liens and tax certificates with funds from my account?

Yes. Opportunities to invest in tax liens, trusts, deeds, and mortgages are available through your Forge Trust SDIRA account. These types of investments fall under the general category of “real estate investments”


Can the investment property manager authorize Forge Trust to transfer funds from the IRA to the property management account?

Only you or someone you designate as an attorney in fact, through a Power of Attorney (POA) on your account, can authorize transactions on your account. You must provide a copy of the POA and complete the Power of Attorney Affidavit in order to authorize another individual to transact on your behalf.


Can the property management account pay bills related to the investment property with funds outside of the IRA?

No. To take advantage of the tax benefits offered for investing in real estate through your IRA, all expenses associated with the upkeep and operations of your properties must be paid from your IRA account--not from any other account, nor from your personal funds--or can be paid from rental income from the property.


Can I direct funds from my IRA into my property manager’s account?

Yes. In fact, you must pay for all expenses associated with the upkeep of your property from your IRA. Use the Expense Payment Request form to direct funds to your property manager to pay property expenses. If your property is held by your IRA LLC, you must pay property expenses from your IRA LLC checking account.


Who should rent checks for property held by my IRA be made payable to?

Checks should be made payable to “IRA Services Trust Company CFBO [your name]”, and it would be helpful (but is not required) to fill in your account number on the memo line as well.


If my IRA owns a percentage of the real estate property, does the IRA only pay its percentage of expenses associated with the property?

Yes. As a property co-owner, the amount of expenses you pay will be calculated by your ownership percentage. For example, if you own 50% of a property, you will pay 50% of its expenses.


What kind of real estate expenses can a designated property manager pay?

Your designated property manager can only conduct transactions on your behalf, and cannot pay for anything out of their own account. Depending on the terms of your agreement with them and the type of property in question, they may handle both the payment of expenses and collection of revenues that are necessary for operating the property in its intended capacity.