Flipping in a Self Directed IRA

[Curtis Steinman]

I am looking at rolling my 401k into a self directed IRA with checkbook control in order to flip properties. I will be buying the properties using case from the SDIRA and reinvesting the profits back into it. So I went and got signed up with a SDIRA company and had an LLC formed to hold the money. I haven't rolled the funds over yet.

My question concerns UBIT. I heard that I may have to pay UBIT in the flip profits if I do more than a couple of flips per year. Is this correct? If so, then what will I be saving by using a SDIRA over a regular IRA and taking the money as I need it?

Also, I am a real estate licensee and was hoping to be able to do my own purchases and sales, but it sounds like I can't do that either at that would be self dealing.