But while the idea of using an SDIRA to invest in real estate sounds attractive, the reality is more complex—and, for most people, it’s far riskier than it appears. In this episode, we’ll dive into why this strategy might be more trouble than it’s worth, and how it introduces unnecessary risks and challenges for those looking to build long-term wealth.
Topics Discussed
- What makes a self-directed IRA different from traditional IRAs and 401(k)s.
- Why real estate is the most common asset held in self-directed IRAs.
- The psychology driving younger investors toward alternative assets.
- How social media and survivorship bias distort real estate success stories.
- Why contribution limits make meaningful real estate investing difficult.
- The risks of using rollover funds to concentrate retirement assets.
- How non-recourse loans increase down payment requirements.
- Why repairs, vacancies, and cash shortfalls are especially dangerous inside a self-directed IRA.
- The problem of illiquidity and lack of flexibility when things go wrong.
- How rising rates and slower appreciation change real estate return assumptions.
Resources Mentioned:
Tags:
ER docs, emergency medicine, self-directed IRA, SDIRA, real estate investing, retirement planning, Roth IRA, alternative investments, non-recourse loans, tax planning, liquidity risk, single asset concentration, financial planning, physician finance, retirement accounts
