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Call (916) 436-3776Self-Directed IRA Investing Greater Sacramento
How Do I Buy Greater Sacramento Real Estate With a Self-Directed IRA?
Your self-directed IRA can buy investment property across the Sacramento region with the IRA holding title and all income and expenses flowing through your custodian. You and other disqualified persons can't use or work on it. If you finance, IRS rules require a non-recourse loan with typically 30 to 40% down. Sacramento's balance of price and rent appeals to IRA investors, and Serve First is based right here.
Greater Sacramento SDIRA real-estate snapshot (2026)
Non-recourse
The only loan type an IRA may use
30 to 40% down
Typical non-recourse equity requirement
In the IRA's name
Title, income, and expenses, never yours
Arm's length
No personal use, no sweat equity
Figures reflect 2026 rules and market data and change over time. Serve First Realty is a licensed California real estate brokerage, not a lender, law firm, IRA custodian, or tax advisor. Self-directed IRA rules are strict, review tax and prohibited-transaction questions with your custodian and a qualified tax advisor.
How a self-directed IRA buys Greater Sacramento real estate
Investing retirement funds in real estate is powerful but rule-bound. Here's how the pieces fit, Serve First on the property, Ashlar Lending on the non-recourse loan, Ashlar LDA on the entity, with your custodian and tax advisor on compliance:
The IRA owns it, not you
Title is held in the IRA's name (for example, 'Custodian FBO Your Name IRA #12345'), or in an LLC the IRA owns. Every dollar of rent comes in, and every expense, taxes, repairs, insurance, HOA, is paid out, through the IRA. You can't commingle personal funds. Serve First helps your IRA acquire Greater Sacramento property at arm's length.
Know the disqualified persons
You, your spouse, your parents, your children and their spouses, and any advisors or service providers to the IRA are 'disqualified persons.' The IRA can't buy from, sell to, rent to, or transact with them. Notably, siblings, aunts, uncles, cousins, and friends are NOT disqualified, but confirm any relationship with your custodian first.
No personal use, no sweat equity
Neither you nor a disqualified person may live in, vacation in, or personally use the property, even briefly. You also can't do the repair or rehab work yourself; paying a disqualified person (say, a contractor parent) for services is also prohibited. The IRA must hire unrelated third parties, paid from IRA funds.
Financing must be non-recourse
If your IRA borrows to buy, the loan must be non-recourse, secured only by the property, with no personal guarantee from you (a personal guarantee is itself a prohibited transaction). Ashlar Lending can arrange this. Lenders typically require the property to be income-producing with roughly 30 to 40% down (a 60 to 70% debt-to-equity ratio).
Understand UBIT / UDFI on financed deals
When your IRA uses a non-recourse loan, the share of profit attributable to the debt-financed portion is 'unrelated debt-financed income' (UDFI), which can trigger unrelated business income tax (UBIT). Depreciation and expenses are deductible pro-rata, softening it. This is a tax-advisor question, but it rarely outweighs the benefit of holding more real estate.
Consider a checkbook LLC
Many investors have their IRA form a single-member LLC and hold the property in it, giving faster 'checkbook control' over expenses and rent without routing every transaction through the custodian. Ashlar LDA can prepare the LLC formation documents at your direction. The tax and compliance treatment stays with your custodian and advisor.
One prohibited transaction can disqualify your entire IRA. If the IRS finds a prohibited transaction, the account can be treated as distributed to you as of January 1 of that year, potentially a large, immediate tax bill plus penalties. Because the stakes are this high, review your specific plan, especially who's involved and how income and expenses flow, with your IRA custodian and a qualified tax advisor before you act. Ashlar's role is the property, the non-recourse loan, and the entity paperwork; the tax and compliance judgment is theirs.
One family. Three roles in your IRA deal.
The property, the non-recourse loan, and the entity
Buying real estate inside a self-directed IRA has distinct pieces, and the Ashlar Brands family can handle three of them:
- 1.Serve First Realty, finds and helps your IRA acquire (or later sell) the investment property at arm’s length, with all activity in the IRA’s name.
- 2.Ashlar Lending Inc. (NMLS #2699657), can arrange the non-recourse loan that IRA rules require when you finance with debt: the loan is secured only by the property, with no personal guarantee.
- 3.Ashlar LDA, Inc., a bonded and registered Legal Document Assistant, can prepare the formation documents for a “checkbook” LLC that many investors use for control, at your direction.
Important: self-directed IRA rules are strict, and a single prohibited transaction can disqualify your entire IRA. Tax questions: UBIT/UDFI on debt-financed income, whether something is a prohibited transaction, disqualified persons, should be reviewed with your IRA custodian and a qualified tax advisor. Ashlar Lending handles the financing, Serve First the property, and Ashlar LDA the entity paperwork; none of them is a tax advisor. A Legal Document Assistant prepares documents at your direction and is not a substitute for an attorney.
Buying Greater Sacramento property in your IRA: the steps
Set up or confirm your self-directed IRA
Work with a self-directed IRA custodian who allows real estate. If you want checkbook control, Ashlar LDA can prepare the LLC formation documents your custodian will fund.
Get pre-qualified for a non-recourse loan
If you'll use financing, Ashlar Lending can tell you early what a non-recourse lender will require, typically income-producing property and 30 to 40% down, so you shop in the right range.
Find the right investment property
Serve First identifies cash-flowing rentals or commercial property in Greater Sacramento that fit IRA investing: arm's-length, income-producing, and titled in the IRA's name.
Close through the custodian, then run it clean
Your custodian funds the purchase; from there, all rent and all expenses flow through the IRA (or its LLC). Keep it strictly arm's length, and keep your tax advisor in the loop on UBIT.
Free calculator
Self-Directed IRA Loan Calculator
Estimate your IRA's max non-recourse loan and UDFI share.
Calculate your LTVFrequently asked questions
Can my IRA really own a rental property in Greater Sacramento?
Yes. A self-directed IRA can own residential or commercial real estate as an investment. The IRA holds title, and all rental income flows back into the IRA while all expenses are paid from it. Greater Sacramento's steady rents and reasonable prices make it a solid market for IRA rental holds.
Can I live in or fix up the property myself?
No. Neither you nor a disqualified person (spouse, parents, children, and others) may live in, vacation in, or personally use the property, even briefly. You also can't perform repairs or rehab yourself, that 'sweat equity' is a prohibited transaction. The IRA must pay unrelated third parties to do the work.
What kind of loan can my IRA use?
Only a non-recourse loan, which is secured solely by the property with no personal guarantee. You can't personally guarantee your IRA's loan, that's a prohibited transaction. Ashlar Lending can arrange a non-recourse loan; expect the lender to require an income-producing property and roughly 30 to 40% down.
What is UBIT and will I owe it?
When an IRA uses debt to buy property, the profit attributable to the financed portion is unrelated debt-financed income (UDFI), which can trigger unrelated business income tax (UBIT). Depreciation and expenses reduce it pro-rata. Whether and how much applies is a question for your tax advisor, but it typically doesn't erase the benefit of the investment.
Who can help with which part?
Serve First finds and helps your IRA buy or sell the property; Ashlar Lending arranges the non-recourse loan; and Ashlar LDA can prepare checkbook-LLC formation documents at your direction. Tax questions and whether a transaction is prohibited should go to your IRA custodian and a qualified tax advisor, none of the Ashlar businesses is a tax advisor.
Investing in Greater Sacramento real estate through your IRA?
Serve First Realty Inc. is a licensed California real estate brokerage that helps investors identify and acquire IRA-suitable investment property across Greater Sacramento.
California DRE# 02133513
SDIRA investing guides for nearby areas
Or start with the statewide overview: Buying Real Estate in a Self-Directed IRA in California.
Greater Sacramento local resources
Offices, fees, and programs that matter for this situation in Sacramento, Yolo, Sutter, and Yuba counties.
Transfer taxes when you sell
- Sacramento and Yolo counties each charge a documentary transfer tax of $1.10 per $1,000 of value ($0.55 per $500). Sacramento County DTT FAQ.
- The City of Sacramento adds its own tax of $2.75 per $1,000, collected when the deed records, so a sale inside city limits pays $3.85 per $1,000 in total. Sacramento County says no other city in the county charges a transfer tax. City of Sacramento transfer tax.
- Example: on a $500,000 sale in the City of Sacramento, transfer taxes total about $1,925; elsewhere in the county, about $550. Who pays is negotiable in your contract.
County assessors (Prop 19 and change-in-ownership filings)
- Prop 19 claims are filed with the assessor of the county where the property is. Replacement-home claims (form BOE-19-B) are due within 3 years of buying or building the new home; parent-child claims (BOE-19-P and BOE-19-G) within 3 years of the transfer or death, or before a sale to a third party. Board of Equalization Prop 19 page.
- Sacramento County Assessor: 3636 American River Drive, Suite 200, Sacramento. Website.
- Yolo County Assessor: 625 Court Street, Room 104, Woodland, (530) 666-8135. Website.
Checked October 2026. Offices, fees, and programs change, so confirm with the agency before you rely on them.
More guides for this area: all Greater Sacramento real estate guides.