Support built for real estate investors

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

• Annual deadline: Annual valuation updates for directly owned real estate must be submitted to STRATA by April 30 so STRATA can meet the IRS reporting deadline of May 31 via Form 5498.
• Process overview: Submit a completed Fair Market Valuation – Real Estate form along with the required supporting documentation.
• Acceptable valuation methods: Valuation updates must be obtained from an independent, qualified source, such as a certified appraisal, broker price opinion (BPO), comparative market analysis (CMA), or a reputable third-party real estate valuation website (for example, Zillow or Redfin). Third-party website valuations are acceptable for annual updates only, provided the change in value is less than 50%. Website valuations cannot be used for other transactions, including Roth conversions or distributions.
• Documentation requirements: Supporting documentation must clearly identify the property, include the valuation date, and reflect the estimated value. If the valuation is provided by an independent third party, the documentation must also be signed and dated.

Learn more → Process overview and document requirements

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

• Annual deadline: Annual updates for mineral rights must be submitted to STRATA by April 30 so STRATA can meet the IRS reporting deadline of May 31 via Form 5498.
• Process overview: Submit a completed Fair Market Valuation – Mineral Rights form along with the required supporting documentation.
• Acceptable valuation methods: Valuations must be obtained from an independent, qualified source, such as a licensed appraisal, CPA, investment sponsor, or other independent third-party familiar with the asset type (for example, a petroleum engineer).
• Documentation requirements: Supporting documentation must clearly identify the mineral rights asset, include the valuation date, reflect the estimated value and be signed and dated by the valuation agent. 

Learn more → Process overview and document requirements

For directly owned real estate, the process begins with a Prohibited Transaction Self-Check to help investors review common IRS rules under IRC §4975 before opening and funding an account. This self-check helps identify potential prohibited transactions or disqualified persons early in the process and ensures the required documentation is gathered before proceeding.

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 →Investing steps

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 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.

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.

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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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.