Self directed IRA LLC

[Mark Freeman]

New to the forum and until last week-end had never heard of Self-Directed IRA. That being said, here's my story:

A friend and I both have kids attending college in the fall. We've decided that we would save some money in housing and food if we bought a house close to campus and had them rent from us. In addition to the savings, we would then be able to turn around and sell the property. If we sold it for what we bought it for, the kids would have lived rent free for the years in school. That's the idea.

However, I don't have the cash for a down payment. (To put in prospective, we're only looking at a $60k house; my DP would be $6K.) I can borrow the money from a line of credit (LOC), but then with me repaying the LOC and the mortgage, it's money out of my pocket every month. (The rent won't cover both the mortgage and the DP)

So I've heard of self directed IRAs, self directed IRA LLCs, etc. If my friend and I go in on this together, what do you think would be the best route? We want to set up an LLC between us, but should I move my whole 50% into a self directed IRA? just the DP?IRA LLC? Is this even the way to go?

Any advise would be appreciated.

Thanks,

- Mark

[Taylor West]

Mark,

@Dmitriy Fominchenko is the President of a Self-Directed IRA company. He can point you in the right direction as he did with me a week or two ago on a phone conference. Check him out and he can answer your questions.