Before STRATA accepts custody of a real estate investment, we complete a pre-custody review to confirm the asset meets our administrative requirements and can be held within a tax-advantaged account.
Quick Links: (1) Self-check | (2) Submit documents | (3) Investment confirmation | Resources
Step 1: Self-check
For directly owned real estate, the process begins with a Prohibited Transaction Self-Check to help investors review common IRS rules under IRC §4975 before moving directly owned real estate property into a new or existing STRATA account.
This self-check helps identify potential prohibited transactions or disqualified persons early in the process and ensures the required documentation is gathered before proceeding. Transactions involving prohibited transactions and/or disqualified persons STRATA is unable to process, including, but not limited to:
- Investments that would be deemed as Prohibited Transactions (i.e., self-dealing) under IRC 4975
- Single-member or family-owned entities (owned 50% or more by family members)
- Neither the investor nor any disqualified persons may reside in or engage in personal use of the property.
Examples of prohibited transactions involving real estate:
- Paying for expenses personally rather than directing the payment from your STRATA IRA
- Using the property in your STRATA account as collateral for a personal loan
- Selling the property from your STRATA account to yourself or a disqualified person
- Purchasing a property that you already own, either personally or through a business.
Quick Links: (1) Self-check | (2) Submit documents | (3) Investment confirmation | Resources
Step 2: Submit documents
New to STRATA? You will first need to open and fund your account. Existing accountholders can begin by submitting the direction instructions.
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Investment direction: Complete and sign STRATA’s Investment Direction - Real Estate form to indicate an in-kind transfer or in-kind rollover of the property. You will be prompted to upload supporting documentation, including:
- Copy of the existing deed: Provide a copy of the existing deed, which shows your current IRA custodian or plan as the owner for the benefit of your IRA or qualified plan.
- Copy of the existing title policy: Provide a copy of the existing title policy, which shows your current IRA custodian or plan as the insured for the benefit of your IRA or qualified plan.
- Recent valuation: Provide a current real estate valuation prepared by an independent third party, such as a licensed real estate appraiser or broker. Online estimates or automated valuation tools (such as Zillow or county tax records) are not accepted for in-kind transfer or rollover transactions. You may upload the signed valuation documentation when submitting STRATA's Fair Market Valuation - Real Estate form.
Quick Links: (1) Self-check | (2) Submit documents | (3) Investment confirmation | Resources
Step 3: Investment confirmation
Once STRATA confirms the investment can be held in custody, a newly recorded deed must be provided. If your current custodian does not prepare a deed transferring the property to STRATA, you may need to work with a real estate professional or attorney to draft a deed for your current custodian to sign. The deed must convey ownership as:
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STRATA Trust Company Custodian FBO (Accountholder Name) IRA (Account #)
After the deed is executed and recorded with the county, send the original recorded deed to STRATA. The investment will show "Pending" in the STRATA account until confirmation is received.
Quick Links: (1) Self-check | (2) Submit documents | (3) Investment confirmation | Resources
Resources:
| Prohibited Transaction Self-Check | Directly Owned Real Estate Checklist |
| Review preliminary self-check prior to opening and funding a self-directed retirement account. | Step-by-step instructions for investing in directly owned real estate. |
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