Real Estate in an IRA
Is there a way to invest in real estate in a self directed IRA, that uses an LLC as the investment and not the actual real estate.
The situation is a son wishes to buy a rental property, Dad is willing to cover the down payment from his IRA as an investment not a dispersal. There will be a loan for approximately 250,000 balance. Dad wants it to be as simple as possible and doesn’t want any problems with the IRS.
Anyone have an answer on how?
Mike Sherman
Permalink Submitted by Richard Rea on Wed, 2019-04-03 16:47
I wanted to do this too but with multi million dollar commerical real estate buildings.The “partnership LLC” was unwilling to accept IRA money as it put a “valuation and reporting” requirement on them and they weren’t interested in the administrative cost burden it placed on them by me. All the other 75 partners were using non IRA money.In the end I used “taxable money” to invest in four seperate commercial building all stand alone LLCs.There is a company of two that will handle this valuation reporting requirement for you, can’t remember their names, for a fee of course.
Permalink Submitted by Richard Rea on Wed, 2019-04-03 17:40
https://irahelp.com/forum-post/38246-real-estate-traditional-ira Most every topic has been cover multiple times in this forumn . Often useful to use the “search function” to get a lot of info on your question before posting your question.
Permalink Submitted by Alan - IRA critic on Wed, 2019-04-03 18:20
Having any part of Dad’s IRA invested in property owned by the son is a prohibited transaction, since the son is a disqualified person with respect to Dad’s IRA account.