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5 Ways to Own Real Estate in Your Retirement Accounts

5 Ways to Own Real Estate in Retirement Accounts: There are several options to own real estate within retirement accounts, according to Marco Rimassa, the president of CFE Financial.

By Marco Rimassa May 13, 2026

Real Estate Investing
Marco Rimassa
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Key Takeaways

  • Even broadly diversified S&P 500 index funds contain real estate exposure (approximately 3% as of 2016), making them the easiest entry point for real estate investing in retirement accounts
  • Private real estate syndications and partnerships locked in self-directed IRAs require accredited investor status (minimum $1M net worth excluding primary residence, or $200K+ annual income) and typically lock up capital for 3-5 years
  • Direct property ownership in a self-directed IRA must be purchased entirely in cash with no personal use allowed, and all maintenance expenses must come from the same account with no commingling of funds
  • REITs (Real Estate Investment Trusts) offer easier access than syndications but carry higher risk due to concentrated exposure to a single real estate vertical (like medical facilities or billboards)
  • Standard 401(k) accounts cannot hold private syndications or direct property; you must use a self-directed IRA to access these more complex real estate investment structures

5 Ways to Own Real Estate in Retirement Accounts: There are several options to own real estate within retirement accounts, according to Marco Rimassa, the president of CFE Financial.

  1. Own a broadly diversified equity fund: Even the most diversified index funds have some real estate sector exposure, estimated around 3% of the S&P 500 market cap. This provides easy and diversified real estate exposure.
  2. Own a dedicated real estate fund: You can get more real estate exposure with a fund focused 100% on commercial real estate assets and companies. These funds are easily accessible through public trading and provide a hands-off way to invest in real estate.
  3. Invest in public real estate companies or REITs: You can buy stocks of public real estate companies, home builders, construction material companies, or real estate investment trusts (REITs). This gives exposure to a single real estate vertical but has higher risk than a diversified fund.
  4. Invest in private real estate partnerships: A group of investors can combine resources to purchase larger commercial properties. This requires more upfront capital and ties up your investment for 3-5 years. Partnerships may require accredited investor status.
  5. Own real estate directly: With a self-directed IRA and enough cash, you can directly purchase investment real estate. But you can't finance the purchase, do repairs yourself, or let family use the property.

The easiest options are owning diversified or specialized real estate funds through your retirement account. Direct ownership offers the most control but requires meticulous rule following and high upfront costs. Consider both the risks and rewards carefully when deciding if and how to invest in real estate for retirement.

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