Self Directed IRA

General Real Estate Investing
1

I read that you can use your self directed IRA and invest the full amount into your LLC. That will allow you to write checks from your LLC and avoid paying the custodian for each transaction. Is this legal or possible?

2

You can also get a self directed IRA that is not in an LLC but gives you check book control. That way you don’t have to deal with any LLC stuff.

This works great if you are SS or flipping and just want to have check book control to write earnest money checks with…

Let me know which option you go with. I am curious, I am still undecided as to which way to go.

3

Sounds good. My only concern is that with check book control, the company that has the self directed IRA monies may charge you for each transaction. My thought is, if the full IRA amount is invested into you own LLC and checks are written directly from that account, excessive charges may be avoided.

I will let you know what I find out. Thanks for the info.

4

Yup,

That depends on how many checks you are going to be writing. You have to compare the fees to your own personal situation. If you write 3 checks a year out of your self directed and that is it, the 20 dollar fee per check will be cheaper than opening and maintaning the LLC @ 3K to open and 150 a year to keep going.

Situational Decision…

5

My wifes business only took $350 to start up and $0 each year in Texas. Why is it 3k startup?

6

because attys charge by the word.

7

Are you talking about an IRA LLC or just a simple LLC that anyone can start to do business with?

IRA LLC’s (from my very limited understanding) have to be formed a certain way with certain articles of incorporation (or whatever LLCs call them). The company you pay to run your IRA LLC handles all these technical issues and you can do business out of your IRA.

Is my undertand that far off?

I have only been researching, so I don’t speak from experience, but if the pros could help, I think everyone would appreciate it.

~joshua

8

I am talking about a normal LLC. That has been my thought from the beginning of this thread.

9

Unless you have a super large IRA balance to fund your LLC that might be tough especially if you are the only one running your LLC and if you use IRA funds and your own funds and start mingling then bad things could happen…or so says the IRS.