Self-Directed IRA to Fund Your Real Estate Deals

June 2, 2026

The Hidden Wealth Tool Most Real Estate Investors Don’t Know About

Self Directed IRA with Kyle Moody

In this episode of Branching Out: Where Real Estate Meets Real Life, Christina sat down with Kyle Moody of American IRA to break down one of the most misunderstood wealth-building tools available today: the self-directed IRA.

🎥 Watch the full video on YouTube below or listen to the podcast here

Most people assume retirement accounts are limited to stocks, bonds, mutual funds, and ETFs. But Kyle explains that many investors are sitting on retirement funds they could potentially use for real estate, private lending, private equity, and other alternative investments — if they structure it correctly.

And that “correctly” part matters.

Because while self-directed IRAs can be incredibly powerful, they also come with rules that can trigger taxes, penalties, or prohibited transactions if investors don’t understand how they work.

“You don’t know what you don’t know,” Kyle explained. “When people finally understand what a true self-directed IRA is, they usually ask, ‘How did I not know about this sooner?’”

From Real Estate to Self-Directed IRAs

Kyle didn’t come from a traditional Wall Street background. Before joining American IRA, he spent years working in real estate and property management in North Carolina.

That experience gave him firsthand exposure to how investors were using retirement accounts differently.

“I started looking at properties and realizing they weren’t owned by individuals,” Kyle shared. “They were owned by entities — and many of those entities were IRAs.”

That discovery eventually led him to American IRA, where he now serves as Business Development Manager and helps educate investors on how self-directed retirement accounts actually work.

And education is a huge part of the mission.

“One of the biggest things we do is help people understand what’s possible,” Kyle said. “Most people have never even heard of this option.”

What Is a Self-Directed IRA?

At its core, a self-directed IRA is still an IRA.

The difference is what you can invest in.

Instead of limiting retirement funds to traditional market investments, a self-directed IRA allows investors to place retirement money into alternative assets like:

Real estate
Private lending
Private equity
Precious metals
Raw land
Certain business investments
Livestock and agriculture-related assets

“Real estate is always going to be number one,” Kyle explained. “Whether that’s single-family, multifamily, commercial, raw land, or even things like laundromats and ice machines.”

The key distinction is that investors direct the investments themselves.

“True self-direction means you’re in control,” Kyle said. “You find the asset. You do the due diligence. We’re simply the record keeper moving the money where you legally direct it.”

Why More People Don’t Know About Self-Directed IRAs

One of the most eye-opening parts of the conversation was Kyle’s explanation of why self-directed IRAs are still relatively unknown.

Often, it comes down to incentives.

Many traditional financial advisors earn compensation based on assets they manage. If a client moves funds into alternative investments outside their platform, that’s money leaving their management.

“How come my financial advisor never told me about this?” Kyle said people often ask. “Because they’re not making money from it.”

That doesn’t necessarily mean advisors are acting maliciously — many simply don’t custody alternative assets like real estate.

That’s where companies like American IRA step in.

The Rules Matter: What You Can’t Do

While self-directed IRAs create flexibility, they also come with strict IRS guidelines.

And according to Kyle, this is where investors can get themselves into trouble if they’re careless.

One of the biggest misconceptions is thinking you can personally use a property owned by your IRA.

You can’t.

“You can’t spend even one night in it,” Kyle emphasized. “You can’t mow the lawn. You can’t switch out light bulbs. If there’s sweat equity involved, don’t do it.”

That’s because the property belongs to the retirement account — not to the individual.

The same rules apply to family members considered “disqualified parties,” including:

Yourself
Your spouse
Parents
Children
Their spouses
Any entities you control

“You have to keep everything completely arm’s length,” Kyle explained.

Violating those rules can trigger serious consequences.

“If the IRS determines you’ve done something prohibited, you could essentially blow up the entire retirement account,” he warned.

Using Leverage Inside a Self-Directed IRA

One of the biggest questions investors ask is whether they can finance a property purchase using IRA funds.

The answer is yes — but only through a non-recourse loan.

With a non-recourse loan, the lender’s only collateral is the property itself. The borrower personally cannot guarantee the loan.

“The lender can only take back the property,” Kyle explained. “They can’t come after the rest of your retirement account or your personal assets.”

However, financing inside a self-directed IRA introduces another layer investors need to understand: UDFI, or unrelated debt-financed income tax.

Kyle stressed the importance of talking with qualified tax professionals before structuring leveraged deals.

Creative Ways Investors Use Self-Directed IRAs

The conversation highlighted just how flexible these accounts can become when investors understand the rules.

Some investors use self-directed IRAs for:

Long-term rentals
Fix-and-flips
Wholesale deals
Private lending
Apartment syndications
Precious metals
Agriculture investments

Kyle even shared one of the most unusual investments he’s seen:

“Definitely pigs,” he laughed during the Fast Fire segment.

He explained that certain assets, like livestock and cryptocurrency, often require an IRA-owned LLC structure — commonly referred to as a “checkbook IRA.”

This allows investors more direct control while still remaining compliant.

Mindset, Stewardship, and Long-Term Thinking

Throughout the episode, one theme kept surfacing: stewardship.

Not just growing wealth — but managing it wisely.

Kyle repeatedly emphasized patience, education, and avoiding shortcuts.

“If you know this is what you want to do, get your account open first,” he advised. “Trying to unwind contracts later can become a nightmare.”

He also encouraged investors not to overlook retirement accounts from previous employers.

“There are a lot of people who forget they have old 401(k)s sitting out there,” Kyle shared. “That money could potentially help streamline the investing process.”

Like many conversations on Branching Out, this episode wasn’t about flashy investing strategies or overnight success.

It was about thoughtful decision-making, education, and using every available tool wisely.

Practical Lessons for Investors Considering a Self-Directed IRA

For anyone exploring self-directed retirement investing, Kyle shared several practical takeaways:

1. Start With Education

Before moving money or signing contracts, understand the rules and structure.

2. Keep Everything Arm’s Length

Do not personally benefit from IRA-owned assets.

3. Leave Margin in the Account

Unexpected repairs, taxes, and expenses still happen — even inside retirement accounts.

4. Use Professionals

Property managers, custodians, tax professionals, and legal advisors all matter.

5. Start Before You’re “Ready”

“I always hear people say, ‘I should have called you four or five years ago,’” Kyle shared.

5-Minute Fast Fire

Christina wrapped up the episode with the show’s signature 5-Minute Fast Fire segment.

Q: What is the biggest mistake beginners make?

“Not getting started. People think they’re too young or too old, and sometimes they accidentally create prohibited transactions because they don’t understand the rules.”

Q: What’s one rule you wish everyone knew?

“Get your account open before you start looking for real estate. Trying to unwind contracts later can become a nightmare.”

Q: What’s the craziest asset you’ve ever seen inside a self-directed IRA?

“Pigs.”

Q: What’s your favorite business or professional development book?

How to Win Friends and Influence People by Dale Carnegie.

Q: What’s one piece of advice for someone who wants to start right now?

“Educate yourself. Figure out your niche. And just get started — because five years from now, you’ll wish you had.”

Final Thoughts

Kyle closed the episode with a reminder that many investors already have access to capital they may not even realize they have.

Old retirement accounts, dormant 401(k)s, and underutilized savings could potentially become tools for building long-term wealth through real estate and alternative investing.

But as he emphasized throughout the conversation, success comes from education, discipline, and doing things the right way.

For investors looking to diversify beyond the stock market, create additional cash flow opportunities, or leverage retirement funds more strategically, self-directed IRAs may be one of the most overlooked tools available today.

What Next?

This is the shift many investors are waiting for — not more information, but structure and accountability around their next step.

That’s why we created the Branch Framework — not as another course, but as a mentor-led system designed to help you move from learning to doing.

Inside the system, you’ll get:

✔ A clear roadmap to define your numbers and your buy box

✔ Real deal reviews and practical guidance

✔ Tools that remove emotion from your decisions

✔ Accountability that turns intention into movement

✔ A community of investors who are actually moving

This isn’t about chasing trends. It’s about stewardship — using the tools in front of you and taking the next faithful, informed step.

👉 Learn more about the Branch Framework and step into your guided path forward.

Your first door — or your next one — may be closer than you think. 🌿