Family Members Using IRA for My Syndicate

[Kody Broussard]

Hello BP,

I am raising money for a multi-family deal and I am wanting to get some close family members involved such as my grandfather and dad. The syndication will more than likely consist of 10 investors. I have heard that as long as the family member does not own more 50% of the LLC they can invest using an IRA and not break any rules.

Can someone please provide some more information on this topic that has some real experience?

Best Regards,

Kody

[Brian Adams]

@Kody Broussard, I have done several syndications and raised millions with investors using a SDIRA as it is a great wealth building tool.

You need to be careful on which family members invest as they will be deemed a disqualified person and a Prohibitive Transaction as provided by the IRS.

My good friend @Carl Fischer at CAMA Plan can provide you more info and is a great resource.

In the meantime here is a schedule on who is deemed a Disqualified Person.

Good luck on your deal!!