We frequently receive inquiries from experienced and aspiring investors alike who partner with us here at PDX Home Buyers.
A large portion of these questions focuses on the process of purchasing investment properties in Portland, Oregon—something we specialize in and have extensive knowledge about.
However, one of the most important aspects of any real estate investment that often gets overlooked is the financing strategy.
A common question we hear is: Can I use my IRA to invest in real estate locally? Specifically, many want to know if their retirement funds can be directed toward purchasing income-generating rental properties in the Portland area.
The good news is that with a self-directed IRA, it’s entirely possible—but there are important rules and strategies you need to understand before getting started.
Self Directed IRAs for Real Estate – Can You Use Them To Buy Portland Rental Properties?
First off, IRA refers to an individual retirement account.
Traditionally, IRAs are used to invest in stocks, bonds, mutual funds, and other conventional financial products—simply because that’s what most people associate with retirement planning.
However, if you’re reading this, you likely already understand that real estate can be a powerful way to build long-term wealth.
So the question becomes: How can you take advantage of your IRA to invest in real estate, enjoy the tax-deferred (or tax-free) benefits it offers, and still capitalize on the opportunities available in the Portland property market?
Although more investors are turning to self-directed IRAs to invest in real estate, it’s crucial to understand and follow the specific legal guidelines when using your retirement funds for real estate purchases in OR. Failing to do so could result in penalties and the loss of your tax advantages.
Some Simple SDIRA (Self Directed IRA) for Real Estate Rules To Follow
No “Self Dealing”
If you’re using your self-directed ira for real estate in Portland you are forbidden from self-dealing.
Self-dealing is outlawed with your SD IRA in the sense that it can’t purchase land or property (both commercial and residential) for the owner or any family member to reside in.
It is also prohibited from selling property or land to the owner of the IRA or family members in the process of business dealings in Portland.
The Process of Buying Portland with Your Self Directed IRA
There are very specific rules that you have to follow if you’re using your SD IRA to pick up Portland OR properties.
Once an you provides the correct documentation for purchasing the local Portland investment property to the self-directed ira custodian, the custodian will start the purchasing process on behalf of the self-directed ira real estate.
All the costs related to the purchase of the property are channeled through the self-directed ira for real estate; hence it’s vital that it must have enough cash to pay for these costs.
Failure of this will lead to the forfeiture of tax benefits and the penalties to be paid by the IRA.
Choose The Type Of Self Directed IRA Wisely To Use It For Your Real Estate Investments
There are lots of options when it comes to self-directed IRA’s.
Not all SD IRA’s allow you to buy real estate in them… so you’ll have to do your research to find the best SD IRA custodians so you can start buying Portland properties in it.
NOTE: We’ve worked with many SD IRA companies and we’ve found the best providers who are very experienced in working with real estate within an IRA. Call us today at (503) 893-9107 or email us through our Contact page and we can give you information on the best SD IRA companies for Portland Oregon real estate investments.
Checkbook Control
Some Self Directed IRAs have more restrictions than others.
As an example… some of them require that you submit the investment details to them… they analyze it… then they send the cash from the account.
But there are accounts that give you whats called “check book control”.
An investor in self-directed ira for real estate with control of the checkbook is able to make purchases by just writing checks rather than having to go through the lengthy process of having to pass it through the custodian first. This lets you take advantage of deals that you have to act quickly on (which many of our local Portland investment properties go fast).
Your Role In The Investment After The SD IRA Purchases It
As the account holder of a self-directed IRA, you have the opportunity to be actively involved in managing your real estate investment. This can include tasks such as collecting rental income, overseeing property maintenance, coordinating with tenants, and handling day-to-day operations—essentially, the same responsibilities you’d take on if you owned the property outside of your IRA.
However, it’s important to remember that using your self-directed IRA to invest in real estate in Portland comes with specific IRS regulations. To stay compliant and avoid penalties, make sure you understand the rules thoroughly—and start by taking these two essential steps right away:
- Find a great self directed IRA company / custodian: This is the first step. It’s essential to set this up properly before making any real estate purchases through your IRA. If your existing IRA provider doesn’t permit real estate investments, don’t worry—we can help. Just give us a call at (503) 893-9107, and we’ll connect you with trusted local custodians who specialize in self-directed IRAs. They can assist you in smoothly transferring your current IRA into a new self-directed account that’s set up for real estate investing.
- Find a couple great Portland investment property experts, like us at PDX Home Buyers.
Partnering with a professional investment property company like ours is one of the smartest ways to access high-potential real estate opportunities in Portland, OR. We specialize in locating and securing deeply discounted properties—ranging from single-family homes to multi-family complexes—across the Portland area. These properties are often off-market or distressed, giving you a chance to purchase below market value.
Our team conducts thorough due diligence on each property, ensuring it meets solid investment criteria, including rental income potential, neighborhood trends, and long-term value growth. We then pass these opportunities along to our network of investors, helping you build a portfolio of profitable, cash-flowing rental properties with ease. Whether you’re a seasoned investor or just starting out, we provide the expertise and support needed to succeed in the Portland real estate market. Join our Preferred Buyers List Here >>
We Can Help You Get Rolling With Your SD IRA For Real Estate.
Feel free to contact us at the phone number listed below or send us an email—we’re here to help. Our team will guide you step by step through the process of using a self-directed IRA to invest in real estate. We’ll connect you with the most reputable SDIRA custodians serving the Portland area, provide valuable educational resources, and make sure you’re fully informed before making any decisions. Plus, we’ll add you to our exclusive Preferred Investment Property Buyers List so you can be the first to hear about new, high-potential real estate deals as they become available.