Course Description

Individual Retirement Accounts (IRAs) allow consumers to invest their savings in various financial assets including real estate. Managed IRA accounts with advisory services limit the investment options available, excluding "alternative assets" such as real estate. As a consequence, consumers who wish to diversify their investments by buying real estate assets are presented with unique challenges without the support of a financial advisor and are exposed to elevated risk.

To competently serve these consumers, real estate licensees must develop specialized knowledge in the factors influencing this distinct type of real estate transaction and the consumer's investment interests. Such factors include regulations, tax implications, economics, financing, asset options, and management considerations of IRA investment accounts, all of which play a role in the consumer's retirement planning and investment decisions.

Throughout this course, licensees will be introduced to the foundational knowledge needed to skillfully navigate the complexities of IRA real estate investments. This course does not aim to transform real estate licensees into financial advisors, but rather to equip licensees with the financial literacy needed to competently facilitate investment transactions in such a way as to safeguard the unique interests and concerns of this set of consumers.

Topic Covered

Lesson 1: Foundations of Investing
Lesson 2: Understanding Trust Accounts and Fiduciaries
Lesson 3: The IRA Real Property Transaction
Lesson 4: Financing the Transaction
Lesson 5: Competent Practice

Learning Objectives

Upon completion of this lesson, students will be able to:

Explain the relevant factors that impact consumer’s investment behavior, including the unique challenges and considerations of retirement savers as they allocate their investment portfolio to include real property.
Describe the transaction parties, fiduciary relationships and duties, and ownership interests pertaining to the trust account.
Successfully complete an IRA real estate transaction including proper completion of contract forms, mastery of the prohibited transaction rules, and comprehension of the roles and fiduciary relationships of the parties involved in an IRA transaction.
Understand risks including consumer risks of fraud and investment loss and licensee risks of such as unauthorized practice.
Demonstrate financial literacy to competently discuss real estate as an investment option and sources of funding with IRA consumers.

Approved States: CO

What State Can I Purchase This Course?

Colorado