Hard Money needs SDIRA Custodian to sign my deal?

[Damon L. Davis]

I'm buying a condo using funds in my self directed IRA LLC's account at Wells Fargo. I'm using a hard money lender to finance the deal. My operating agreement for the SDIRA clearly states my name as the manager of the LLC with all rights to conduct the business of the LLC. For some reason my HML is requiring the SDIRA custodian company (the one that set up the IRA and holds the administrative accounting but doesn't do business in or with MY SDIRA LLC) fast nine have a good one to sign on my REI condo purchase. The hard money lender said it is because I don't have a financial stake in the LLC.

The whole thing feels to me like if I was trying to transfer money from my personal checking at Bank of America to someone else, and that someone else required me to get Bank of America corporate to sign off on the transfer. I own the account.

Can someone help me understand why the HML wants the SDIRA custodian to to sign with me, please?

[Brian Eastman]

@Damon L. Davis

The HML simply does not know what they are doing.

The LLC is the borrower. You as the manager can execute the affairs of the LLC. If you were to ask the custodian to sign, they would not. They have no role over the day-to-day operations of the LLC. They simply documented that the IRA has invested into the LLC.