The IRS has always permitted an IRA to purchase real estate, raw land, or flip homes. With IRA Financial Group’s self-directed IRA LLC solution, buying rental properties is as simple as writing a check and is tax-free. As the manager of your Self Directed IRA LLC, the IRA holder will have control over his or her IRA funds so that a real estate purchase can be made by simply writing a check. One major advantage of buying rental properties with a Self-Directed IRA is that all rental income generated by the property is tax-deferred until a distribution is taken (Traditional IRA distributions are not required until the IRA owner turns 70 1/2). In the case of a Self-Directed Roth IRA LLC, all gains are tax-free.
Unlike a conventional Self Directed IRA which requires custodian consent and requires high custodian fees, a Self Directed IRA LLC with Checkbook Control will allow one to buy real estate, including rental properties by simply writing a check. With a traditional custodian controlled self directed IRA, one will have total control to make a real estate purchase, pay for improvements, and then sell the property without ever talking to the IRA custodian. Since all the IRA funds will be held at a local bank in the name of the Self Directed IRA LLC, all one would need to do to engage in a house flipping transaction is write a check straight from the IRA LLC account or simply wire the funds from the IRA LLC bank account. With IRA Financial Group’s self-directed IRA LLC solution, no longer would one need to ask the IRA custodian for permission or have the IRA custodian sign the real estate transaction documents. Instead, with a Checkbook Control IRA, as manager of the IRA LLC, the IRA holder, will be able to buy rental properties simply by writing a check.
The Real Estate IRA LLC has become a popular investment and retirement vehicle for real estate investors. The real estate IRA LLC is a perfect vehicle for making real estate investments without the need for custodian approval. Making an investment is as simple as writing a check or sending a wire from the IRA LLC account which can be opened at any local bank.