Where do SD IRA investors go to find opportunities?

[Account Closed]

I have been scouring the internet, wondering where self-directed IRA investors look to find real estate investment opportunities?

[Vanessa Pham]

@Paul Brockmann

What you describe is true for some self-directed IRA plans, but there are Checkbook IRA or IRA LLC plans that give you full control of the funds.

With these plans, the custodian is still there to comply with the IRS regulations. However, he/she will help you set up an LLC and invest the IRA funds into it. You, the plan owner, can be named as the manager of the LLC and will direct the funds on behalf of the IRA plan. So ultimately, you decide which bank to deposit the funds with, and have full access to the funds. Once you find a deal, you don't need to take it to the custodian. Instead, you can just write a check from your IRA LLC.

Of course, you still can only use the funds for investment purposes (i.e, buying an investment property, not a personal residence for yourself). You will also need to take caution to avoid engaging in a prohibited transaction.

This BP blog post discusses this type of IRA plan in details: http://www.biggerpockets.com/blogs/2810/blog_posts/28450-real-estate-ira