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What real estate can I invest in with my STRATA account?

Permitted property types

Your STRATA self-directed retirement account may invest in many types of directly owned real estate, provided the investment complies with IRS rules. Examples of eligible real estate include:

  • Vacant lots and raw land

  • Residential rental properties (single-family or multi-unit)

  • Condominiums and apartment buildings

  • Commercial or industrial property

  • Mortgage notes secured by real estate

For documentation requirements, refer to STRATA’s Directly Owned Real Estate Investment Checklist. 

Property types not permitted

STRATA will not process certain types of property, including but not limited to:

  • Timeshares

  • Foreign real estate

  • Property purchased directly through an auction or tax sale

If you are unsure whether a property qualifies, please contact STRATA before entering into a contract.

Can I purchase a foreclosed property?

Yes, but only if the property has already completed the foreclosure process and you can provide all required documentation listed on STRATA’s Directly Owned Real Estate Investment Checklist.

STRATA does not process foreclosure purchases made directly at auction or tax sales.

Can I invest through an LP or LLC?

Yes. If your STRATA account acquires real estate through a limited partnership (LP) or limited liability company (LLC), your account will hold an equity interest in that entity. Refer to STRATA’s Private Equity Investment Checklist for required documentation.

If your IRA originates a loan secured by real estate, refer to STRATA’s Private Debt Investment Checklist.

Can I co-invest with others?

Yes, provided the other owners are not disqualified persons under IRS rules. The deed must clearly specify the undivided ownership percentage of each party.

Can I use leverage?

Yes, but only through a non-recourse loan.

  • The STRATA account must be the borrower.

  • The property must be the only collateral.

  • All loan payments must be made from the STRATA account.

  • You may not personally guarantee the loan or make payments out of pocket.

Debt-financed property may be subject to unrelated business taxable income (UBTI). Consult your tax advisor for guidance.

Important reminders

Certain transactions involving real estate are prohibited within an IRA. For example, you and other disqualified persons may not personally use the property or engage in self-dealing transactions.

Before investing, review STRATA’s Rules and Regulations page and ensure you understand the definition of a disqualified person. STRATA does not provide tax or legal advice. Consult a qualified professional regarding your specific situation.