A Self Directed IRA LLC that is used to purchase real estate is also known as a Real Estate IRA or Self Directed IRA Real Estate. A Real Estate IRA LLC or Self Directed IRA LLC with “Checkbook Control” plan is an IRS and tax court approved structure that will allow you to use your retirement funds to purchase real estate or make almost any other type of investment tax- free!
The real estate IRA structure can be set-up using any type of retirement funds, including a traditional IRA, Roth IRA, SEP, SIMPLE IRA, 401(k), 403(b), etc.
With a Real Estate IRA checkbook control structure you will never have to seek the consent of an IRA custodian to make a real estate investment. Instead all decisions our your as the manager of the real estate IRA LLC.
To establish a Real Estate IRA LLC with “Checkbook Control” structure, a limited liability company (“LLC”) is established that is owned by the IRA care of the custodian and managed by the IRA account owner (you). The passive custodian then transfers the IRA owner’s funds to the new IRA LLC bank account. As the manager of the real estate IRA LLC, the IRA owner will have the ability to make a real estate investment by simply writing a check or doing a wire from the LLC bank account.
The real estate investment must be made in the name of your Self Directed IRA Real Estate LLC. All income and gains generated by your real estate investment will generally flow back to the IRA tax-free!