Since the creation of IRAs back in the early 1970s, the IRS has always permitted an IRA to purchase, hold, or flip real estate. In fact, it states it right on the IRS website. By using a self-directed Roth IRA to buy real estate, one will be able to purchase real estate or flip homes tax-free and without requiring custodian consent!
With a Self-Directed IRA with checkbook control, one can purchase real estate or flip homes without paying tax. In addition, with IRA Financial Group’s self-directed IRA LLC, flipping homes or engaging in a real estate transaction is as simple as writing a check. As manager of your Self-Directed IRA real estate LLC, you will have the authority to make real estate investment decisions on behalf of your IRA on your own without needing the consent of an IRA custodian. One of the true advantages of a checkbook control IRA is that when you want to purchase a home with your self-directed IRA, you can make the purchase, pay for the improvements, and even sell or flip the property on your own without involving the IRA custodian. In other words, with a checkbook control IRA LLC, you will have the power to flip homes or do multiple real estate transactions on your won without requiring the consent of a custodian. One additional important advantage of purchasing real estate with a Self-Directed IRA is that all income and gains are 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.
Flip a Home without Requiring the Consent of a Custodian
A real estate IRA with checkbook control is the most efficient and cost effective vehicle for doing house flips with retirement funds. With a self-directed IRA with checkbook control, you will be able to use your IRA or 401(k) funds to purchase real estate and engage in flipping homes tax-free and without custodian consent. A traditional IRA custodian (financial institution) will not allow you to purchase real estate using your IRA or retirement funds. Therefore, in order to have the ability to engage in house flipping transactions using retirement funds, a Self Directed Roth IRA LLC with Checkbook Control is the answer.
Use a Self-Directed IRA and Flip a Home Tax-Free
One major advantage of flipping homes with a Self-Directed IRA is that all gains are 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. In other words, all gains attributable to the house flipping transaction will flow-back to your IRA LLC tax-free!