Self-Directed IRA Real Estate Investor Trends 2025

The Rise of Real Estate in Retirement Accounts

Q: What is a self-directed IRA for real estate?

A self-directed IRA for real estate is a retirement account that allows investors to use IRA funds to buy alternative assets, including real estate. Unlike many brokerage IRAs that are limited to stocks, bonds, mutual funds, or ETFs, a self-directed IRA can hold assets such as direct real property, real estate notes, private placements, and other permitted alternative assets.

Q: Can you invest in real estate with an IRA?

Yes. Real estate can be held in a self-directed IRA when the account is with a custodian that allows real estate. Many brokerage accounts may be called self-directed but are typically limited to traditional securities and do not allow direct real estate investments.

Q: What types of real estate can investors purchase with self-directed IRAs?

Investors are using self-directed IRAs for both direct real property and real estate notes. Direct property purchases may include single-family homes, vacant land, commercial real estate, multifamily properties, and real estate auction purchases.

Q: What is the difference between a direct real estate and real estate note investment?

Direct real estate means the IRA invested in tangible property. Real estate notes are debt investments secured by real estate, where the IRA participates as a lender or note investor. In both cases, the IRA is the investor, not you personally.

Q: How do you fund a self-directed IRA real estate purchase?

Investors typically fund a self-directed IRA through a transfer, rollover, or contribution. A transfer moves funds from one IRA custodian to another, a rollover moves retirement plan assets from a former 401(k) into an IRA, and a contribution adds new money to the IRA subject to IRS limits.

Q: What should you consider before opening a self-directed IRA?

Investors should understand the rules, including prohibited transactions, disqualified persons, and personal benefit restrictions. They should also compare custodians based on fees, service, security standards, real estate experience, and any other types of assets they plan to hold.

Insights into How Investors Use Self-Directed Retirement Accounts for Real Estate Investing

01 Introduction 02 A Note from Our CEO 03 The Transformation of the Modern Retirement Account 04 Where Retirement Investors Are Putting Capital 05 How Investors Structure Real Estate Purchases 06 How Retirement Funds Move into Real Estate 07 What Investors Should Consider Before Opening a Self-Directed IRA 08 How to Get Started with a
Self-Directed IRA 09 Key Takeaways 10 About IRAR Trust Company

Methodology

How it works

Data Collection Over 1500+ Self-directed IRA Transactions Evaluated

Data Year 2025

Introduction

Real Estate, Retirement, and the Search for More Control

Retirement investors are not only looking for returns. Many also want more control over how their money is invested and more confidence in what they own.

$ 0

Trillion

Total U.S retirement assets

$ 0

Trillion

In IRA Assets

0 %

of retirees rely primary on Social Security

Fear Outliving Savings 31%

Say they built a large enough nest egg 53%

Note From CEO

Real estate has long been a priority for us because we have seen how it can help self-directed IRA investors diversify with greater purpose and confidence. That focus has built deep expertise across our team and continues to guide our investment in new programs, education, and our work toward a Real Estate IRA Designation. We created this report to highlight what the data makes clear: many investors are using real estate strategically inside self-directed retirement accounts and building meaningful long-term value through those investments. With growing national attention on expanding retirement access to alternative assets via the recent Executive Order, including real estate, the opportunity is gaining wider recognition.

We hope you find our report informative, useful, and inspiring as you consider the role real estate may play in a more diversified financial future.

Liane Bathey, Founder and CEO

Section 01

A New Type of Real Estate Investor

Growth in self-directed real estate investing is being shaped by people who want a more active role in retirement planning. Many have already built meaningful savings and are looking for ways to diversify with more purpose and more control.

$ 0

Average IRAR Trust Self-Directed IRA balance at end of Q4 2025

Section 02

Where Retirement Investors Are Putting Capital

Real estate remains one of the most common investments in self-directed IRAs. In this dataset, purchase activity is split between direct real property and real estate notes secured by property, showing two main ways investors are putting retirement capital to work.

Single Family Homes 66%

Section 03

How Investors Structure Real Estate Purchases

Most real estate purchases in IRAs are made directly, with the IRA funding the purchase entirely in cash. At the same time, a meaningful share of investors also use partnering or non-recourse financing to increase purchasing power and diversify how their capital is invested.

Non-Recourse of all Transactions 19%

Section 04

How Retirement Funds Move into Real Estate

Before a self-directed IRA can invest in real estate, the funds must be held in an account that allows alternative assets. While some brokerages describe their IRAs as self-directed, those accounts are typically limited to traditional securities and do not allow real estate investments

Traditional IRA 70%

Section 05

What Investors Should Consider Before Opening a Self-Directed IRA

Opening a self-directed IRA begins with understanding the rules. While self-directed IRAs follow the same core IRS rules as traditional retirement accounts, investors must also avoid prohibited transactions, disqualified persons, and any personal benefit tied to the investment in order to preserve the account’s tax advantages

Compare Custodians

Section 06

How to Get Started with a Self-Directed IRA

Opening a self-directed IRA is a straightforward process. Once the account is established and funded, investors can begin using retirement capital to pursue real estate opportunities

Open An Account

Where-Retirement-Investors-Are-Putting-Capital

What-Investors-Should-Consider-Opening-SDIRA

Key Takeaways

Self-directed IRA real estate investors are often retirement-focused individuals who want more control over how their long-term savings are invested. Many are drawn to real estate because it feels more familiar, tangible, and easier to understand than other alternative assets

Strong Demand For Direct Real Estate Ownership

Active Drive For Partnering And Non-Recourse Financing

FAQ

What is a self-directed IRA for real estate?

Can you invest in real estate with an IRA?

What types of real estate can investors purchase with self-directed IRAs?

What is the difference between a direct real estate and real estate note investment?

How do you fund a self-directed IRA real estate purchase?

What should you consider before opening a self-directed IRA?

About IRAR Trust Company

Helping investors use retirement funds beyond traditional markets

Since 1996, IRAR Trust Company has helped investors use self-directed retirement accounts for alternative assets, with a strong focus on real estate. IRAR brings more than 30 years of experience in working with real estate investors, supported by educational resources, knowledgeable service, and a lower-cost approach to self-directed investing.

IRAR is the National Association of REALTORS®’ preferred provider for self-directed retirement plans, helping members and their clients pursue financial goals through strategic real estate investing with retirement funds.

Self-Directed IRA Custodian

Over 30 Years in The Self-Directed IRA Industry

Transfer & Rollover Experience

Learn How Investors are using Their IRAs to invest in Real Estate

Download Your Copy

Sources

1 Retirement Realities: The Experience of Retirees 25th Annual Transamerica Retirement Survey
December 2025

2 Quarterly Retirement Market Data, Fourth Quarter 2025
March 2026

3 Fidelity 2025 Q4 Retirement Analysis
December 2025

4 Fiduciary Duties in Selecting Designated Investment Alternatives
March 2026

5 Democratizing Access to Alternative Assets for 401(k) Investors
August 2025

The Rise of Real Estate in Retirement Accounts

Table of Contents

How it works

Real Estate, Retirement, and the Search for More Control

Trillion

Trillion

A New Type of Real Estate Investor

Where Retirement Investors Are Putting Capital

How Investors Structure Real Estate Purchases

How Retirement Funds Move into Real Estate

What Investors Should Consider Before Opening a Self-Directed IRA

How to Get Started with a Self-Directed IRA

Key Takeaways

Strong Demand For Direct Real Estate Ownership

Active Drive For Partnering And Non-Recourse Financing

FAQ

Helping investors use retirement funds beyond traditional markets

Download Your Copy

Sources

IRAR Trust Company
100 Pringle Avenue Ste 650
Walnut Creek, California 94596

Solutions

SELF-DIRECTED IRAs

ALTERNATIVE INVESTMENTS

INDIVIDUAL INVESTORS

REALTORS

FINANCIAL PROFESSIONALS

INVESTMENT SPONSORS

Knowledge Center

GETTING STARTED WITH SELF-DIRECTED IRAs

GUIDES

BLOG

FAQs

SDIRA PROFESSIONAL NETWORK

REAL ESTATE IRA BASICS

COMPARE MY FEES

About IRAR

WHO WE ARE

CAREERS

CLIENT TESTIMONIALS

PRESS RELEASES

Updates & Support

CLIENT CENTER

FORMS

PAY FEES

CONTACT US

SIGN IN

The Rise of Real Estate in Retirement Accounts

Table of Contents

How it works

Real Estate, Retirement, and the Search for More Control

Trillion

Trillion

A New Type of Real Estate Investor

Where Retirement Investors Are Putting Capital

How Investors Structure Real Estate Purchases

How Retirement Funds Move into Real Estate

What Investors Should Consider Before Opening a Self-Directed IRA

How to Get Started with a Self-Directed IRA

Key Takeaways

Strong Demand For Direct Real Estate Ownership

Active Drive For Partnering And Non-Recourse Financing

FAQ

Helping investors use retirement funds beyond traditional markets

Download Your Copy

Sources

Get the Latest Investment Strategies from Our Experts

IRAR Trust Company100 Pringle Avenue Ste 650Walnut Creek, California 94596

Solutions

SELF-DIRECTED IRAsALTERNATIVE INVESTMENTSINDIVIDUAL INVESTORSREALTORSFINANCIAL PROFESSIONALSINVESTMENT SPONSORS

Knowledge Center

GETTING STARTED WITH SELF-DIRECTED IRAsGUIDESBLOGFAQsSDIRA PROFESSIONAL NETWORKREAL ESTATE IRA BASICS

COMPARE MY FEES

About IRAR

WHO WE ARECAREERSCLIENT TESTIMONIALSPRESS RELEASES

Updates & Support

CLIENT CENTERFORMS

PAY FEESCONTACT USSIGN IN

IRAR Trust Company
100 Pringle Avenue Ste 650
Walnut Creek, California 94596

SELF-DIRECTED IRAs

ALTERNATIVE INVESTMENTS

INDIVIDUAL INVESTORS

REALTORS

FINANCIAL PROFESSIONALS

INVESTMENT SPONSORS

GETTING STARTED WITH SELF-DIRECTED IRAs

GUIDES

BLOG

FAQs

SDIRA PROFESSIONAL NETWORK

REAL ESTATE IRA BASICS

WHO WE ARE

CAREERS

CLIENT TESTIMONIALS

PRESS RELEASES

CLIENT CENTER

FORMS

PAY FEES

CONTACT US

SIGN IN