Support built for real estate investors

Prior to accepting custody of an investment, STRATA Trust Company (“STRATA”) completes a pre-custody check to make sure we can meet our custodial responsibilities and the administrative requirements of the investment. Use the article referenced below for a step-by-step guide to ensure you’ve gathered all the necessary documentation to proceed with your directly owned real estate investment. 

Examples of directly owned real estate investments include, but are not limited to:

• Residential single-family and multi-unit homes

• Commercial or industrial properties

• Apartment buildings and condominiums

• Improved or unimproved land

Learn more → Real Estate Guide and Checklist

Only if the property has already been foreclosed upon, and you can provide all the items on STRATA's Investment Checklist for Real Estate. However, STRATA will not process a foreclosure purchase directly through an auction or tax sale.

To comply with IRS regulations, real estate property must be held in the name of STRATA Trust Company Custodian FBO (Accountholder Name) IRA (Account #). This is how the purchase contract, title commitment/insurance, deed, and liability insurance must be titled.

Learn more → Investment Onboarding

If your IRA owns property, all income and expenses must flow through the IRA—not you personally.

• Rental income: Any rent or lease payments must be paid directly into your IRA.
• Property management: A third-party property manager is required; the IRA owner cannot manage the property.
• Expenses: Your IRA must maintain enough cash to cover all costs, including property taxes, improvements, repairs, and earnest money deposits.

No. The earnest money deposit must be funded directly from your STRATA IRA. You cannot pay with personal funds and seek reimbursement later.

How it works:

• Provide STRATA with a copy of the contract or purchase agreement.
• Submit an Earnest Money Deposit Authorization form.
• STRATA will remit the deposit from your IRA to the title company or closing attorney.

Visit Investment Onboarding for a step-by-step process.

All earnest money deposits, insurance premiums, taxes, debt payments, or other expenses of the property (including any improvements) must be paid by the IRA to an unrelated third party. A copy of the invoice or tax notice must be provided to STRATA along with a completed and signed Expense Payment Authorization form.

You may not pay for an expense out-of-pocket or on a credit card and remit the statement for payment. STRATA will not process payments to a credit card issuer.

It’s essential to provide payment instructions before or at the time funds are sent to STRATA.

• Payments from borrowers or servicing agents should be accompanied by a completed Deposit Certification.
• For wire payoffs, the borrower or servicing agent should also send a copy of the deposit coupon by email or fax.
• Make sure STRATA has your payment terms on file to avoid delays.

Investment sponsors may provide reconciliation instructions using STRATA’s file format template. Bulk payments or payments covering multiple accountholders can be submitted via SFTP or secure email. To learn more, contact [email protected] or view STRATA’s Private Equity Investment Setup Quick Guide.

Yes. Your STRATA IRA can hold the note and deed of trust/mortgage from a seller-financed property sale.

• Proceeds: Principal and interest payments are deposited directly into your STRATA account.
• Flexibility: You can reinvest the cash according to your investment strategy.
• Guidance: Review STRATA’s Investment Checklist for Private Debt for detailed requirements and next steps.
• Compliance Reminder: All seller-financed transactions must comply with IRS rules on prohibited transactions. STRATA does not provide tax or legal advice—please consult a qualified professional regarding your specific situation.

Learn more → Directly owned real estate FAQs

The IRS requires IRA custodians to obtain and report the fair market value (FMV)—or good faith estimate—of IRA assets each year. This valuation must also be updated before any taxable event, such as a distribution or Roth conversion.

• Annual deadline: FMV updates for directly owned real estate must be submitted to STRATA by April 30 so that STRATA can meet the IRS reporting deadline of May 31 (via Form 5498).
• Process overview: Submit a completed Real Estate Valuation Form along with supporting documentation from an independent, qualified source (such as an appraisal, broker price opinion, or other reputable online valuation source such as Zillow or Redfin).
• Document requirements: The valuation must clearly identify the property, include the date of valuation, and be signed/dated if an independent party provided the estimate.

Learn more → Process overview and document requirements

Some IRA assets are much harder to liquidate; distributing the RMD in shares of the investment may also be complicated or not possible. Despite these issues, there is no IRS exception to the RMD requirements for illiquid assets. Consider these possible solutions:

Take From One Account- RMD rules allow you to aggregate (or combine) your RMDs from your IRAs and take the total amount from one account. So, if you have more than one IRA, you can calculate the RMD amount for each IRA and add them together. If you have one IRA that is illiquid, you could simply take the RMD for that account from another IRA. Remember, there are limits here. You cannot satisfy your RMD for your IRA from a workplace plan or a Roth IRA. Note: You cannot combine your owned IRAs with those of your spouse or with IRAs that you have inherited.

Take an In-Kind Distribution- For many asset types, it is possible to take a distribution of part or all shares to satisfy your RMD. If an in-kind distribution is requested, the asset will be retitled in your own name. 

Add a Cash Contribution- If you are eligible to inject some cash into an IRA in the current tax year your RMD is due, you may use these funds to satisfy your RMD. The SECURE Act makes this possible by allowing IRA contributions at any age, but you would need to have earned income and you would be limited to $7,000.

To avoid last-minute mistakes and stiff IRS penalties, it is important to plan ahead. Talk to your financial advisor or tax attorney to understand how to fulfill your RMD requirements and what is best for your situation.

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For general accountholder information inquiries, our team is available Monday–Friday, 8:00 a.m.–5:00 p.m. CST.

• Email Us – Write to us at [email protected].
• Online Service Request Form – Submit a request, and a member of our team will call you to discuss your needs at a time that works best for you.
• Book a Meeting – Schedule an appointment with one of our Client Services Representatives.
• Call Us Directly – Reach us at 866-928-9394.

To complete the sale of real estate held in your STRATA IRA, please provide the following:

• Direction to Sell Form – Complete and sign STRATA’s Direction to Sell form.
• Purchase Contract – The seller must be listed as STRATA Trust Company, Custodian FBO [Accountholder Name] IRA [Account #]. You will sign as the Accountholder, and STRATA will sign as Custodian.
• Closing Documents / Settlement Statement – You will sign as “Read and Approved,” and STRATA will sign as Custodian. Include any overnight, fax, or prepaid FedEx/UPS label instructions for delivery to the title company/closing attorney.
• Deed – The deed should be drafted with STRATA Trust Company, Custodian FBO [Accountholder Name] IRA [Account #] as the grantor.
• Deposit of Sales Proceeds – All proceeds must flow back into your IRA. The title company/closing attorney should remit funds directly to STRATA using the Deposit Certification instructions.