Retirement Money → Real Assets | Veritus Capital Partners

Educational Guide · January 2026

Retirement Money

→ Real Assets

Most self-directed IRAs can hold more than stocks and bonds. With an Equity Universal IRA, you can invest in real estate, private equity, and more, all within a single tax-advantaged IRA.

↓ Download PDF Current Opportunities By Melissa Hawkins, Principal & Managing Partner

37%

Last major S&P 500 correction. Retirement accounts took 13 years to recover.

15%

Target IRR on multifamily real estate — driven by execution, not headlines.

2.0×

Target equity multiple over a 5-year hold, plus ongoing cash flow distributions.

Chapter 1

Why Real Estate is the Perfect Retirement Account

There are many advantages to converting your 401(k)/IRA into real estate. In fact, investing directly into specific kinds of real estate can function like a retirement account — taking care of you throughout retirement without depleting the original capital.

Real estate has long been a stable investment that many people use to protect wealth, especially during troubling times. Now, you can utilize real estate to protect your retirement savings from market fluctuations and provide your family with monthly cash flow.

Cash Flow Now

Receive quarterly distributions while you're still working — not just at retirement.

↻

Cash Flow in Retirement

Live off distributions without touching principal. Your account doesn't deplete.

▲

Long-Term Appreciation

Target 1.8×–2.0× return on investment over a 5-7 year hold — cash flow plus appreciation.

∞

Inflation Beneficiary

As the Fed prints money, real estate benefits. Cash flow and values rise together.

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Tangible Asset

A property cannot be easily built, replaced, or destroyed. Everyone needs a place to live.

The stock market was not designed for your retirement. It was designed to make fund managers wealthy — whether the market goes up or down.

— Veritus Capital Partners, 2026

Chapter 2

Stock Markets Are Risky

The stock market was not originally designed for retirement accounts. It was created as a way for companies to raise capital. Investors buy and sell shares with values that fluctuate based on sentiment, news, and factors entirely outside your control.

While the stock market can be a valuable tool for some, it is inherently risky — especially at all-time highs. The last major correction fell 37%. It took retirement accounts 13 years to recover.

Most people have no idea what they are actually invested in. Many companies in these funds are "zombie companies" — generating no income, carrying no cash flow. They can be worth billions on paper today and worth nothing tomorrow. There's a good chance your retirement account is exposed to them.

The stock market is not designed for you to win. It is structured to ensure fund managers make money regardless of whether you profit or not.

Chapter 3

Why You Should Invest in Real Estate for Retirement

When you convert your 401(k)/IRA to invest in real estate without penalty, the first benefit is that you now know exactly what you are investing in. For over a thousand years, real estate has been the primary vehicle used to protect and grow wealth.

Cash Flow

Instead of living off the principal in your retirement account, you live off the cash flow. Real estate investments provide quarterly distributions without reducing your invested capital.

▲

Long-Term Appreciation

Real estate can appreciate in value over time. Our target is a 1.8×–2.0× return that includes the cash flow over a 5-7year hold.

■

Tangible Asset

These are real assets — not paper assets created by Wall Street. A property cannot be easily built, replaced, or destroyed. Everyone needs a place to live.

∞

Inflation Beneficiary

If the Federal Reserve continues to print money, real estate benefits. Cash flow and property values both rise as inflation increases.

Chapter 4

Never Draw Down Your Principal: Live Off Cash Flow

Real estate allows ordinary investors to protect their hard-earned money throughout retirement, rather than depleting it through forced withdrawals imposed by the IRS. Because real estate generates positive cash flow, you can live off the distributions made by the property — without ever tapping into invested capital.

With traditional retirement accounts, the IRS requires you to withdraw approximately 4% each year whether you need it or not. That means at the end of 25 years, your account balance could be zero. Real estate is different: it provides a steady source of cash flow plus the potential for long-term appreciation, without the need to sell your investment — allowing you to maintain your wealth and have something to pass on to future generations.

≤

Leverage

Financing allows investors to make positive use of debt, with debt service paid by the property's income, multiplying the return on investment and amplifying potential gains.

Principal Protection

Unlike traditional retirement accounts that deplete over time, real estate cash flow means you never have to sell your asset. You can pass wealth to future generations intact.

Chapter 5

Tax Advantages Unavailable in Stocks

The greatest tax advantages and loopholes in retirement investing are found in real estate. Stocks, bonds, gold, mutual funds, and ETFs provide none of these advantages. A self-directed IRA or 401(k) invested in real estate allows wealthy investors to borrow against it — without selling — and not pay taxes on the borrowed funds.

Tax-Deferred Growth

With a traditional IRA, income or capital gains generated by real estate are not taxed until funds are withdrawn in retirement. Significant tax savings over time.

Tax-Free Withdrawals

With a Roth IRA, funds have already been taxed, so income or capital gains generated by the investment can be withdrawn completely tax-free in retirement.

Depreciation Deductions

Many real estate investors utilize depreciation deductions to offset rental income and reduce overall tax liability — a benefit unavailable in stock market investments. Each situation is different.

Chapter 6

How to Convert Your IRA / 401(k) to Real Assets

Converting retirement accounts into real assets is now possible, and the process is simpler than most people think. This has long been a well-guarded strategy used by wealthy investors to take back control of their retirement.

Note: Self-directed retirement accounts are subject to rules and regulations, including prohibited transactions and the requirement that assets must be held by the custodian or administrator.

Set Up a Self-Directed Account

Open a self-directed IRA or 401(k) with a custodian who specializes in this account type. See Appendix A for a comparison of five top custodians.

Transfer or Rollover Your Funds

Move funds from your existing retirement account via transfer, rollover, or contribution — subject to IRS limits. Paperwork accuracy matters.

Invest in Real Assets

Use those funds to invest in cash-flow-producing multifamily real estate. Your custodian sends funds directly to the investment; income flows back into your retirement account.

Chapter 7

The Retirement Money Checklist

When retirement funds are involved, your goal is simple: protect downside and avoid landmines.

1 — Sponsor: Who Is Driving the Bus?

Track record in the same strategy — not just "real estate experience."

Systems for budgeting, renovations, leasing, and investor reporting.

Clear communication when results are below plan.

2 — Debt: Where Deals Break

Fixed vs. floating rate; hedging strategy; extension options.

Reserves: operating, capital, and debt service buffers.

3 — Business Plan Clarity

Exactly how NOI will be improved: income up, expenses down, upgrades.

Renovation scope, unit cost, and realistic timeline.

4 — Asset Reality Check

Deferred maintenance and major capital systems (roof, HVAC, plumbing).

Reputation and resident experience friction points.

5 — Documentation Discipline

Read the PPM. Understand fees, alignment, and reporting cadence.

Confirm investor protections in the operating agreement.

Chapter 8

Common Mistakes to Avoid

Picking structure before strategy

Deciding on the account type before understanding what you're investing in leads to misaligned structure and sometimes irreversible tax consequences.

Assuming the custodian protects you

Custodians are processors, not underwriters. They will send your money to a bad deal just as efficiently as a good one. Your diligence is the only protection.

Getting sloppy with account rules

One prohibited transaction can disqualify an entire account. When in doubt, consult your tax attorney before acting.

Chasing returns without understanding downside

A 20% IRR projection is meaningless without understanding the path to get there and the risks that could prevent it. Always stress-test the downside.

Chapter 9 — Hypothetical Illustration

Market Portfolio vs. Multifamily Target

This is a simple illustration only. It is not a promise of performance.

Scenario A

Market Portfolio

8% avg annual return · 5-year hold

$146,933

On a $100,000 investment. No cash flow during the hold period. Returns depend entirely on market conditions outside your control.

Target

Scenario B

Multifamily Real Estate

15% IRR · 1.8×–2.0× equity multiple · 5-year hold

$180K–$200K

On a $100,000 investment, plus $30,000 in cash flow distributions over 5 years. Performance driven by execution, not headlines.

Year	Cash-on-Cash Return	Cash Flow on $100,000
Year 1	4%	$4,000
Year 2	5%	$5,000
Year 3	6%	$6,000
Year 4	7%	$7,000
Year 5	8%	$8,000
Total	Avg 6%	$30,000

Hypothetical example for education only. Not a promise of performance. Real estate and market investing both involve risk, including loss of principal. Consult your advisors.

Appendix A

Custodians: What They Are & 5 Options

A custodian holds your self-directed IRA/401(k) and processes the official steps: paperwork, sending funds, receiving funds, and recordkeeping. Think of your IRA as a locked piggy bank — the custodian is the keeper. You choose the investment; they process the transaction. Most custodians do not evaluate deal quality.

Custodian	Known For
Equity Trust Company	One of the largest SDIRA custodians; broad asset support across account types.
The Entrust Group	Strong educational resources; focused on real estate investors.
STRATA Trust Company	Competitive fee structure; responsive service model.
Directed IRA	Investor-friendly flat-fee structure; fast processing timeline.
IRA Financial	Solo 401(k) specialist; strong compliance and legal support.

Appendix B — Custodian FAQ

Does my custodian pick my investments?

No. In a self-directed account, you direct the investment and the custodian processes it.

Will the custodian tell me if a deal is good or bad?

Usually, no. Custodians don't underwrite the deal for you. That's on you and your advisors.

Why do people get in trouble?

Most issues come from breaking retirement-account rules — personal benefit or prohibited relationships.

Can I use a property my IRA buys?

Generally, personal use creates serious compliance problems. Always confirm with a qualified professional first.

What's the safest mindset?

Clean structure, clean compliance, conservative downside planning, and rigorous sponsor diligence.

Appendix C

Retirement Money → Multifamily Investor Checklist

Use this before investing IRA/401(k) dollars in any private placement.

1 — Setup

Confirm correct self-directed account structure and a custodian.

Compare custodians for real estate experience, fees, and service model.

Shortlist: Equity Trust, Entrust, STRATA, Directed IRA, IRA Financial.

2 — Funding

Confirm transfer/rollover/contribution path; complete paperwork correctly.

Verify contribution rules and limits with your tax professional.

3 — Compliance (Do Not Skip)

Avoid personal use of retirement-account assets.

Avoid prohibited relationships/transactions. Ask if unsure.

Consult your tax professional before investing.

4 — Deal Quality

Clear NOI levers: income up, expenses down, targeted upgrades.

Renovation scope, cost, timeline, and realistic rent assumptions verified.

5 — Sponsor & Downside

Sponsor has a track record in the same strategy with strong reporting.

Debt terms understood and stress-tested; reserves exist.

A Plan B exists if rents or occupancy miss projections.

Important Disclosures — Please Read

This guide is for educational purposes only. It is not investment advice, tax advice, legal advice, or financial advice.

Nothing in this guide is an offer to buy or sell any security. Investments can only be made through formal offering documents (Private Placement Memorandum, Operating Agreement, and subscription materials).

Real estate investing involves risk, including the potential loss of some or all principal. Any references to potential returns are illustrative only. Tax rules change and apply differently to each person and account type. Consult your own qualified tax professional before investing through a retirement account.