How To Self Directed IRA Real Estate

So you have heard about the self-directed IRA and you know that it somehow makes real estate investing easier within the confines of an Individual Retirement Account. But how? With checkbook control over a self-directed IRA, the IRA owner does not have to receive the IRA custodian's permission to move forward on a proposed transaction. This makes a time-sensitive real estate transaction flow much more smoothly.

The second major bonus of using a self-directed IRA for real estate transactions is the circumventing of custodian fees. Traditionally a custodian applies fees to every transaction involving IRA funds. This includes minor expenses associated with the sale or purchase of a piece of real estate. So, not only do IRA owners have to pay these expenses, they also have to pay the custodian fees required to pay these expenses.

So now you know the benefits of using a self-directed IRA for real estate transactions, but how does it work? The usual instrument for gaining checkbook control over a self-directed IRA is the Limited Liability Company. In effect, the IRA owner owns the IRA, which owns the LLC, which owns the real estate. Since the assets are all within the IRA, the IRA owner avoids certain restrictions that might otherwise apply.

How To Obtain a Self-Directed IRA
There are many companies offering self-directed IRAs now that they are gaining in popularity. However, many of them do not offer fee-free checkbook control over the account. A minimal fee structure and absolute checkbook control are the two major factors with which you should concern yourself. You can start your search with Asset Exchange Strategies LLC out of Austin, Texas. They provide absolute checkbook control and a bare-bones fee structure.