Self Directed IRA for Fix and Flip

[Ryan Sing]

I prefer to fix and flip and want to use an SDIRA for additional capital to increase my number of concurrent projects. Eventually I would then hold some property in the SDIRA. Most of the research on SDIRAs has led me to the advantages for rentals. Is it uncommon for investors to use an SDIRA for flipping and why is that? 

Thanks! 

[Jeff Nash]

@Brian Eastman provided good feedback on your inquiry and is spot on.  There is a way to limit UBTI if you choose to do flips to the extent it rises to the level of a business activity, but it might not be worth the effort and requires a complete evaluation of your financial and tax situation.