Considering SDIRAs for a specific situation, and moving forward afterward.

[Mike Dawson]

The more I look, the more questions I seem to have.  I'll try to keep it concise.  Thank you for any help you can offer!

Quit my job last year. I have a TSP still in place which I would like to rollover to a SDIRA(possibly with checkbook control). However, I'm seeing info on solo401 being attractive to self employed individuals. I qualify as a REP, but don't have a business in place. Also, in the future, I may decide to have employees so I'm not sure how that would jive with a solo401.

My first order of business is to use my funds I roll over to JV with a seasoned investor on a 40 unit MF. I would be loaning the money for the DP, while the seller finances the rest. Investor and my IRA(or SDIRA/LLC) would be on the deed, and only make interest on the money loaned. No rents, equity, or other profits from property come back to me. At refi, his obligation to my loan would be satisfied, and the IRA(or IRA/LLC) would be removed from the deed, ending the transaction. After the money is repaid, I'd like to engage in some personal loans, tax liens, and other deals like the one mentioned before.

Does anything about the first scenario throw any red flags?

Any opinions on whether I should consider a solo401 over a SDIRA?

Regarding the SDIRA, can you add an LLC later on if it's decided the extra control is worth pursuing?

Thanks for reading, and I look forward to any help.

[Dmitriy Fomichenko]

@Mike Dawson,

Using your self-directed IRA for private lending is a great way to deploy your retirement funds. I love doing that with my retirement funds for 3 reasons: passive, low risk, generous returns (10+%). 

I agree with Brian that Checkbook IRA would make more sense long term and it is more flexible, cost effective and convenient option. 

A truly self-directed Solo 401k plan is the best of the 3 options if you are eligible for it. Can you clarify what you mean by "I qualify as a REP, but don't have a business in place"?