Warren Baker’s post on the WealthCounsel blog states: “Let’s assume for a moment that your client’s goal is to invest into a piece of residential rental real estate. Your client can either:  (1) request that the new custodian purchase the property directly on behalf of the IRA; or (2) direct the custodian to first invest the IRA into a Limited Liability Company (“LLC”) that is thereafter 100% owned by the IRA and purchase the property using the LL (note: your client will act as the Manager of this LLC).  The latter option gives your client the flexibility to purchase the property using a check from the LLC’s checking account, which depending on the custodian’s ability to move quickly, will be quicker than option number one.”

Related posts:

  1. Information About Forming & Operating Self-directed IRA Limited Liability Companies
  2. Stepping Outside the Real Estate “Box” with Self Directed Retirement Accounts
  3. How to Invest Self Directed IRA Funds in a Limited Liability Company & Make Nontraditional Investments
  4. Can I Form an Arizona IRA LLC & Do Business or Own Real Estate in Another State?
  5. Cattle, Fish Business Make Up Alternative IRAs
  6. Savvy Buyers Use Self-directed IRA to Buy Homes
  7. Self-Directed IRA a Good Bet?
  8. The Individual 401(k)
  9. Are self-directed IRAs too good to be true?