What does a private real estate investment firm near me actually do?

A private real estate investment firm like Orivant Capital Partners acquires, renovates, and resells residential, multifamily, and commercial properties, then offers qualified investors the chance to participate in individual projects through property-specific syndications rather than a pooled fund.

How do I sell a distressed or underperforming commercial property?

Orivant Capital Partners buys distressed, vacant, lender-owned, and underperforming commercial and multifamily properties directly, without requiring repairs, listings, or a traditional sale process. Owners can submit a property for review directly through the company website.

What states does Orivant Capital Partners invest in?

Orivant Capital Partners evaluates acquisition opportunities across Maryland, Virginia, Delaware, Pennsylvania, Ohio, Kentucky, North Carolina, South Carolina, and West Virginia, with a core focus on the Mid-Atlantic and an expansion focus on the Appalachian and Eastern United States.

Who can invest in a real estate syndication with Orivant Capital Partners?

Participation in each property-specific syndication depends on the terms and eligibility requirements of that individual offering, which may include accredited investor status. Interested investors should contact Orivant Capital Partners directly to review eligibility for a specific project.

Why work with Orivant Capital Partners instead of a traditional real estate fund?

Orivant Capital Partners structures each syndication around a single property rather than a blind pooled fund, giving investors visibility into the specific asset, renovation plan, and resale strategy, with hands-on oversight of acquisition, construction, and project execution.

Can I Use a Self-Directed IRA or Former-Employer 401(k) to Invest in Real Estate? | Washington, DC | Orivant Capital Partners

Can I Use a Self-Directed IRA or Former-Employer 401(k) to Invest in Real Estate?

Some retirement account structures, including self-directed IRAs and certain former-employer 401(k) plans eligible for rollover, can be used to invest in real estate opportunities such as property-specific syndications. Eligibility depends on the custodian, account type, and plan rules, and investors should work with a qualified custodian along with independent tax and legal advisors before proceeding.

Using Retirement Account Structures to Invest in Real Estate

Professionals, retirees, and business owners who have spent years contributing to a 401(k) or IRA often reach a point where they want more control over how that money is invested. Real estate is one option some investors explore, and structures like a self-directed IRA can make it possible to invest in real estate opportunities using retirement funds. This article explains, at an educational level, how that generally works, which structures are commonly used, and where investors need to be especially careful.

Orivant Capital Partners is a private real estate investment firm that structures qualifying acquisitions as property-specific real estate syndications. Some investors choose to participate using funds held in a self-directed retirement account. This is not the right fit for every investor or every retirement plan, and the information below is educational rather than tax or legal advice.

What Is a Self-Directed IRA

A self-directed IRA is a type of individual retirement account that allows the account holder to direct investments into a broader range of assets than a typical brokerage IRA, which is usually limited to stocks, bonds, and mutual funds. A self-directed IRA can potentially hold real estate, private placements, and other alternative investments, depending on the custodian and the specific rules that apply to that account.

The account itself, not the individual, technically owns the investment. This distinction matters for how income, expenses, and eventual proceeds flow back into the retirement account rather than to the investor personally.

Eligible Retirement Account Structures

Several types of retirement accounts may be eligible to invest in real estate through a self-directed structure, including:

Traditional self-directed IRAs
Roth self-directed IRAs
SEP IRAs for self-employed individuals and small business owners
Solo 401(k) plans for owner-only businesses
Former-employer 401(k) plans that are eligible for rollover into a self-directed IRA

Not every retirement plan qualifies. Active employer-sponsored 401(k) plans, for example, are typically governed by the current employer’s plan rules and may not allow self-directed investments while the investor remains employed there. This is why the rollover process, discussed below, is often a necessary first step.

How a 401(k) Rollover Into a Self-Directed IRA Generally Works

For investors interested in using a former-employer 401(k) for real estate, the general process typically involves:

Confirming the former-employer plan allows a rollover, which is common once employment has ended
Selecting a custodian that specializes in self-directed IRAs and supports real estate or alternative investments
Opening a self-directed IRA account with that custodian
Initiating a direct rollover from the former 401(k) into the new self-directed IRA to avoid unnecessary tax consequences
Directing the custodian to fund the specific investment once due diligence is complete

Each custodian has its own process, timeline, and documentation requirements, so investors should confirm specifics directly with the custodian they choose.

The Role of the Custodian

A self-directed IRA custodian is a specialized financial institution responsible for holding the account’s assets, processing transactions, and maintaining compliance with IRS rules. Unlike a traditional brokerage IRA custodian, a self-directed IRA custodian typically does not provide investment advice or vet the merits of a specific investment. The investor is responsible for evaluating the opportunity and directing the custodian to fund it.

Because custodians vary in the types of alternative investments they support, their fee structures, and their processing timelines, this is an important area for investors to research before selecting one.

Understanding Prohibited Transactions

One of the most important concepts for any investor considering a self-directed IRA is the prohibited transaction rule. The IRS restricts certain transactions between a retirement account and what it calls disqualified persons, which can include the account holder, certain family members, and entities they control.

Examples of transactions that commonly raise prohibited transaction concerns include personally living in or using a property owned by the IRA, buying a property from or selling a property to a disqualified person, and directly managing renovation work in a way that could be considered providing personal services to the IRA’s investment. Violating these rules can result in significant tax consequences, including disqualification of the entire IRA. This is an area where qualified tax and legal advice is essential rather than optional.

Illiquidity and Timeline Considerations

Real estate held inside a retirement account is generally illiquid compared to publicly traded investments. A property-specific real estate syndication involves a defined hold period, and investors should not expect to access those funds until the investment concludes.

Investors using retirement funds for real estate should also plan around required minimum distribution rules that apply to certain account types, since an illiquid real estate investment may not align well with future distribution timing if not planned for in advance.

Due Diligence Still Applies

Using a self-directed IRA does not change the underlying due diligence process. Investors should still evaluate the sponsor’s experience, the property’s underwriting, projected returns and timeline, fees, and downside risk exactly as they would with any other real estate investment opportunity. The retirement account structure affects how the investment is held and taxed, not whether the underlying opportunity is sound.

Work With Independent Tax and Legal Advisors

Because prohibited transaction rules, custodian requirements, and tax treatment vary based on individual circumstances, investors should consult independent tax and legal advisors before using a self-directed IRA or a former-employer 401(k) rollover to invest in real estate. Orivant Capital Partners does not provide tax or legal advice, and not every retirement plan or investor situation will be suited to this approach.

How Orivant Capital Partners Works With Retirement Account Investors

Orivant Capital Partners structures qualifying acquisitions as property-specific real estate syndications across the Mid-Atlantic region, including Maryland, Virginia, Delaware, Pennsylvania, Ohio, Kentucky, North Carolina, and West Virginia, with continued expansion into Appalachian and Eastern United States markets. When an eligible investor wants to fund a specific opportunity through a self-directed IRA, our team can coordinate with the investor’s chosen custodian to help facilitate that process alongside the investor’s own advisors.

Frequently Asked Questions

Can I use my current employer’s 401(k) to invest in real estate? Generally, active employer-sponsored 401(k) plans are governed by the current employer’s plan rules, which often restrict self-directed investments. A former-employer 401(k) is typically eligible for rollover into a self-directed IRA, which can then be used for real estate investments, subject to plan and custodian rules.

What is a prohibited transaction in a self-directed IRA? A prohibited transaction generally involves a transaction between the IRA and a disqualified person, such as the account holder or certain family members, including personal use of IRA-owned property. These transactions can carry serious tax consequences and should be reviewed with a qualified advisor.

Do I need a special custodian for a self-directed IRA real estate investment? Yes. Not all IRA custodians support real estate or alternative investments. Investors typically need to work with a custodian that specifically offers self-directed account services for these asset types.

Is real estate held in a self-directed IRA a liquid investment? No. Real estate investments held through a self-directed IRA are generally illiquid and tied to the specific hold period of the underlying project, which investors should plan for in advance.

Related Resources

Next Step

Investors interested in learning whether a self-directed IRA or former-employer 401(k) rollover may be suited to a current opportunity are encouraged to complete the Investor Interest Form. Orivant Capital Partners can be reached at (202) 946-6108 or through our office at 800 Maine Avenue SW, Washington, DC 20024.

Investment Risk Disclosure

Investments offered by Orivant Capital Partners are private placements, not registered with the SEC or any state securities regulator, and are available only to qualified prospective investors who meet applicable certain requirements. These investments are illiquid: there is no public market for them, transfers are restricted, and investors should expect to hold their capital for the full multi-year duration of the investment with no right to redeem early. Because private placements are not subject to the disclosure requirements of registered offerings, the information Orivant provides, including projected returns and underwriting assumptions, has not been independently verified, and prospective investors should conduct their own independent due diligence before investing.

Real estate investments, particularly value-add and distressed strategies, carry a materially higher risk profile than many other asset classes. There is no guarantee that any investment will achieve its projected returns, and investors may lose some or all of their invested capital, including as a result of leverage, execution or repositioning delays, and broader market or economic conditions. This summary does not describe every risk of investing with Orivant Capital Partners and is qualified in its entirety by the definitive offering documents for each specific investment, which investors should review with their own legal, tax, and financial advisors before making a decision. For questions about a specific offering, contact us at info@orivantcapital.com or (202) 946-6108, or visit orivantcapital.com.

For more information on private placement investing and investor protection:

U.S. Securities and Exchange Commission: www.sec.gov
SEC Investor.gov (accredited investor definition and private placement basics): www.investor.gov
Financial Industry Regulatory Authority (FINRA): www.finra.org
North American Securities Administrators Association (NASAA), for state securities regulator contacts: www.nasaa.org

Can I Use a Self-Directed IRA or Former-Employer 401(k) to Invest in Real Estate?

Can I Use a Self-Directed IRA or Former-Employer 401(k) to Invest in Real Estate?