Purchasing an existing LLC in an IRA

[Michael Lauther]

we are currently discussing purchasing an existing LLC that has had an offer accepted on a REO.

we need to purchase the LLC because the contract is not assignable to my IRA.

what are the pitfalls if any to this approach. we have a tenant ready who wants to rent with option to buy.

[Jon Holdman]

I'm aware of one wholesaler here who does just this process. He creates an LLC specifically for the property, then sells the LLC.

How is your IRA structured? With a custodian or as an IRA-LLC? If its with a custodian, discuss the transaction with them. They will probably have input into what you can do. If its an IRA-LLC I think I would buy the LLC then transfer the property from the LLC to the IRA-LLC and discard the LLC you just bought.

Be a good topic of discussion with your attorney and accountant.