Using Your IRA To Buy Another Home: The Strategy Turning Buyers Into Investors

If you’re a real estate investor—or hope to become one—the 21st Century Road to Housing Act could make investment properties more accessible. And you may be able to purchase them through a tax-advantaged retirement account, such as a self-directed IRA. Starting Jan. 7, 2027, the law prohibits large institutional investors that control 350 or more single-family homes from acquiring additional single-family homes unless they qualify for an exemption. “The goal is to reduce competition from large Wall Street investors and give individuals a better chance to buy investment properties,” says Adam Bergman, founder of IRA Financial in Miami Beach, FL.If the law does create more opportunities for individual investors, using an IRA to invest in real estate could be an attractive long-term wealth-building strategy you might want to explore. What the new law could mean for real estate and retirement investors According to Bergman, many current and prospective investors are excited about what this legislation could mean. Many believe that if institutional investors pull back, there could be more inventory, fewer bidding wars, and better buying opportunities for long-term investors. “While no o...