Using Real Estate Options in Self-Directed Retirement Accounts
Using Real Estate Options in Self-Directed Retirement Accounts For savvy investors, self-directed IRAs (SDIRAs) and Solo 401(k)s offer more than stocks and bonds — they unlock access to alternative assets like real estate, precious metals, and even startup equity. One often-overlooked strategy in this space is using real estate options — contracts that give your retirement account the right, but not the obligation, to purchase property at a set price within a certain period. This guide explains how to structure, use, and legally navigate real estate options in retirement accounts to amplify returns without triggering prohibited transactions or tax penalties. 📌 Table of Contents What Are Real Estate Options? Why Use Options in a Self-Directed IRA? How to Structure a Compliant Option Contract Benefits and Risks of Option-Based Investing Custodian and IRS Compliance Tips Further Resources 📜 What Are Real Estate Options? A real estate option...