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Updated 11 months ago on . Most recent reply

User Stats

255
Posts
140
Votes
Joseph Konney
  • Real Estate Agent
  • Forest Park, IL
140
Votes |
255
Posts

Can I List My SDIRA Property For Sale On The MLS As The Listing Broker?

Joseph Konney
  • Real Estate Agent
  • Forest Park, IL
Posted

I own my own real estate brokerage. As long as I don't pay myself a commission and the SDIRA pays for the listing photos, am I able to list the property myself on the MLS? Or could another broker at my company list and get paid commission so long as the company doesn't retain any profits and just acts as a pass-through entity to pay the other broker?

Here in IL, received commissions MUST be paid from a sponsoring broker to a broker/agent under their supervision, they can't be paid directly from a client to the broker/agent. 

The idea is that under these conditions, I would not personally benefit which could be viewed as acceptable non-rule breaking actions. Hoping to get some feedback from investors in the same position or a CPA. Thanks!

Most Popular Reply

User Stats

727
Posts
351
Votes
Brett Synicky
  • Solo 401k and SDIRA Consultant
  • Orange, CA
351
Votes |
727
Posts
Brett Synicky
  • Solo 401k and SDIRA Consultant
  • Orange, CA
Replied

@Joseph Konney You are a disqualified person. You cannot perform any "work" on behalf of the IRA. You cannot personally benefit from an investment in your IRA. If another agent in your office sold your home, you would benefit since you own the brokerage. This is not a good idea.

Furthermore to address your other comments, you can do white collar work but not blue collar work   Hiring somebody to swing the hammer is ok, you cannot swing the hammer yourself.  

As @Bill B. suggested, go hire a 3rd party brokerage to handle it all. It's not worth risking the invalidation of your IRA account which would cause penalties and taxes.

  • Brett Synicky
  • Loading replies...