Real Estate investments through self-directed IRAs use tax sheltered dollars and you choose the property yourself. 
 
Your self-directed plan can buy, sell or exchange real estate - leveraged or unleveraged, improved or unimproved. You can also Buy or Start a Business. 
 
Examples:

A real estate agent represents a client who needs more money to make the down payment on a home. The agent knows another client who has retirement funds he or she wants to invest. The agent puts the two parties' together and one-client loans the other client the needed funds from his or her self-directed retirement account, after establishing payment terms and interest rates. Or, a group of investors may want to participate in a major property purchase. They can do so, by using funds from their individual self-directed accounts to buy the property or lend money to others that wish to buy.
 
Self-directed plans can also invest in raw land, which is then subdivided and resold. These plans can buy and rehabilitate property and resell it. They can be used for the leveraged purchase and subsequent resale of a home. They can fund swing loans. Quite simply, if a real estate transaction can be carried out and, if it doesn't involve self-dealing or dealing with one's relatives, it can be financed with funds from a self-directed employee benefit plan.
 
But the best thing about any investment option available to holders of self-directed retirement accounts is that all profits realized on investments made through the accounts are fully tax-deferred until the account holder begins to take distributions from the account. That's usually not until age 59½, and not necessary until age 70½.
 
Truly for Everyone

Self-directed employee benefit plans can truly benefit all investors - the self-employed as well as those working for others, married people and those who are single, people just starting out in their careers and executives earning a six-figure income. The variety of plans, IRA, and SEP-IRAs, make it possible for anyone to take part in at least one type of plan. Those who already have begun saving through an IRA or SEP-IRA account, in all likelihood, one whose investment options are more restrictive than a fully self-directed plan, may roll over or transfer their funds to a plan administrator who offers IRAs/SEP-IRAs which allow a full range of investment options. And, for those who have several retirement accounts established, they may be used for one larger investment, for maximum economic impact.