What Can You Actually Invest in with a Self-Directed IRA?

It’s a question that comes up all the time. People hear about a Self-Directed IRA and immediately want to know what’s possible. Is it really that flexible? Can you really hold real estate or gold in a retirement account? The short answer is yes. The long answer? The fact that the real value comes from understanding how these investments fit together.

A Self-Directed IRA opens the door to more choices than most investors realize. It’s not about doing something exotic. It’s about using what you already know to build the kind of portfolio that feels real, personal, and diverse.

#1: Real Estate in a Self-Directed IRA

Let’s start with the big ol’ asset. Real estate. It’s one of the most popular choices for Self-Directed IRA investors. You can hold rental properties, raw land, multi-family units, or even commercial spaces. The rental income and profits from a sale flow back into your IRA, growing tax-deferred—or tax-free, if it’s a Roth.

The key is keeping it clean. The property belongs to your IRA, not you. That means no personal use, no weekend stays, and no renting to close family. Managed the right way, real estate can bring long-term stability and a steady stream of income to your golden years.

#2: Precious Metals as a Safe Haven

There’s something timeless about gold and silver. Precious metals can help protect your portfolio from inflation and market volatility. Inside a Self-Directed IRA, you can hold physical bullion that meets IRS purity standards—think gold coins or silver bars stored in an approved depository.

For many investors, the appeal is emotional as much as financial. It’s tangible. It’s real. And when markets swing, it’s comforting to know that part of your wealth is sitting in something solid.

#3: Private Lending and Notes in a Self-Directed IRA

Not everyone wants to own property outright. Some prefer to lend money instead. With a Self-Directed IRA, you can act as a private lender, issuing loans secured by real estate or other collateral. The borrowers make payments back to your IRA, where interest income grows tax-sheltered.

It’s a way to earn passive income without being a landlord. The key is due diligence. “Due diligence” here means you’re making sure the borrower and the terms make sense. But for investors who understand lending, it’s a rewarding option that adds steady returns and diversification.

#4: Tax Liens and Deeds

This one surprises a lot of people. Self-Directed IRAs can invest in tax liens—claims placed by local governments when property owners fall behind on taxes. Investors can purchase these liens, collect interest, and sometimes even acquire the property if it goes unclaimed.

It’s not for everyone, but it’s an intriguing way to blend civic process with profit potential. It requires patience and research, but many experienced investors find it to be a smart, hands-on approach within their Self-Directed IRA.

#5: Private Companies and Startups

Maybe you know a small business that’s growing fast. Maybe you’ve always wanted to back a local venture or a startup you believe in. With a Self-Directed IRA, you can invest in privately held companies—something traditional retirement accounts rarely allow.

These investments can carry higher risk, but also higher potential reward. The benefit of a Self-Directed IRA is that you can choose based on your own expertise or interest. Just be sure to keep everything properly documented and make sure the business isn’t owned or operated by someone on the IRS “disqualified persons” list.

Interested in learning more about Self-Directed IRAs?  Contact us at 866-7500-IRA (472) for a free consultation or download our free guide.