I am currently contemplating buying a piece of land which includes a car wash on that land. This purchase would take place within my self directed IRA. The current owner of the propery has leased out the property and car wash for 3 remaining years on a lease and the lessee has an option to extend for an additional 5years. The lease is a triple net lease. My purchase would involve my assumption of this lease.

There are no apparent issues if the lessee continues making prompt lease payments. However, in the event the lesse defaults under the terms of the lease, may my IRA LLC continue to operate the car wash or am I obligated to find another tennant. Additionally, if I can continue operating the car wash, may I employ a direct line family member, assuming the diect line family member was paid a fair and reasonable salary?

Thank you.

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