Monday, December 14, 2015

Self Directed IRA Investing

Many people do not realize that they can invest in real estate within their retirement accounts. In fact, there are many investments that can legally be made within your retirement accounts:
  • Notes
  • Tax Liens
  • Mobile Homes
  • Franchises
  • Small Business
  • Gold, Silver and Precious Metals
Pretty much anything except insurance and collectibles (like wine, paintings, coins, etc.). Most people will self-direct their retirement accounts in order to invest in these other areas.

Some self-directed IRAs can be set up as an LLC with checkbook-writing authority at a local bank. (I used a custodian who is no longer in business. iDirect Law took over that business, so you may want to contact them at (888) 906-4015 about how to do this.) Here is the process for opening a checkbook self-directed IRA:
  1. Establish an account with a Self-Directed Custodian.
  2. Transfer the IRA money over to the Self-Directed Custodian account.
  3. Provide the information needed to begin setting up the IRA/LLC.
  4. Set up the bank account for the IRA/LLC
  5. Coordinate with the Self-Directed Custodian to transfer the IRA money from the Custodian account to the LLC bank account
  6. Begin making offers on properties or other investments as Manager on behalf of the LLC.
No personal expenses or benefits may be received from your IRA investment, no self-dealing with the company you own, no salary must be drawn from the account, and there must be no transactions with prohibited parties (meaning those you are related to by blood or marriage). For more information, please contact a retirement account specialist.

Hope this is helpful!

Happy Investing!

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