Investing in multifamily real estate through a syndication structure, like at EagleCap, is ideal for retirement plans, as it is inherently passive. With the right approach, you can use your retirement funds—from an IRA or a 401(k)—to generate steady, long-term returns through real estate.
If you’ve been wondering. . .
how to invest retirement money in real estate
or
how to invest in real estate using an IRA or 401(k)
. . .this guide will walk you through five easy steps to get started (plus a BONUS—read to the end).
Step 1: Find an Independent Custodian
Since traditional brokerage firms don’t allow direct real estate investments through retirement accounts, the first step is to find a self-directed IRA or Solo 401(k) custodian. This custodian will act as a neutral third party to oversee your account while allowing alternative investments like real estate.
Choosing the right custodian is crucial. Look for one with a solid reputation, positive client reviews, and a strong track record in handling real estate investments. It’s also important to confirm that they operate in your state and support investments in multifamily syndications like those offered at EagleCap. The right custodian should provide excellent customer service and a smooth, hassle-free process for setting up your account.
Step 2: Set Up Your Self-Directed IRA or Solo 401(k)
Once you’ve selected a custodian, the next step is to set up your self-directed IRA (SDIRA) or Solo 401(k). While the exact process varies by provider, it typically involves filling out an application, designating beneficiaries, and submitting the necessary identification documents.
If you’re unsure which type of account is best for you, here’s a quick breakdown:
A Self-Directed IRA (SDIRA) is a great option for individual investors who want to passively invest in real estate while maintaining the tax benefits of a traditional or Roth IRA.
A Solo 401(k) is designed for self-employed individuals or small business owners. It offers higher contribution limits and more flexibility compared to an SDIRA.
Once your account is set up, you’re ready to move to the next step—funding it.
Step 3: Fund Your Account
Funding your new self-directed retirement account is easier than you might think. If you already have an existing IRA or 401(k), you can transfer or roll over your funds into the new account without triggering taxes or penalties. Some investors also make direct contributions if eligible.
This step gives you the flexibility to diversify beyond stocks and bonds and into alternative assets like real estate. With your funds in place, you’re ready to start evaluating investment opportunities.
Step 4: Choose the Right Real Estate Investment
A self-directed retirement account allows you to invest in a variety of real estate opportunities, including single-family homes, commercial properties, and even new developments. However, one of the most passive and profitable options is multifamily real estate syndications.
At EagleCap, we specialize in multifamily syndication investments, which allow investors to own a share of a professionally managed apartment complex without dealing with the day-to-day responsibilities of being a landlord. These investments offer consistent cash flow, long-term appreciation, and tax advantages—making them a strong choice for retirement wealth-building.
Before committing to any investment, be sure to conduct your due diligence. Review the investment structure, projected returns, and potential risks to ensure it aligns with your financial goals.
Step 5: Start Investing and Build Wealth for Retirement
Once you’ve chosen the right investment, the final step is simple: invest and watch your retirement funds grow. Your custodian will handle the paperwork, and your funds will be transferred directly from your self-directed account to the investment. From there, you’ll start earning passive income through rental cash flow and long-term property appreciation.
With a well-structured syndication investment, you don’t have to worry about managing tenants, maintenance, or property operations. Your money is working for you while you focus on enjoying life and planning for your future.
BONUS: Take Control of Your Retirement with Real Estate
Investing in real estate with a self-directed IRA or Solo 401(k) can provide steady returns, tax advantages, and portfolio diversification—all while requiring minimal effort on your part. Multifamily real estate syndications, in particular, offer a truly passive way to grow your wealth.
If you’re ready to explore how to invest your retirement money in real estate, EagleCap can help. Contact us today to learn more about our investment opportunities and start building long-term financial security.
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