Checkbook IRA LLC Questions

[Marc M.]

Hello BP,

I have a small (<$50K) Roth IRA that is currently 'self-directed' with Etrade to purchase stocks. I have read many posts on here about buying Real Estate with an IRA or Solo 401k (which I qualify for, but don't have any self-employed funds to contribute right now...and unfortunately cannot roll my ROTH IRA into it). So, I have a few questions about SDIRA LLC's I'm hoping some BP members can answer:

1) Can I move part of my Roth IRA funds to a different Self-Directed Custodian and continue using Etrade to make security investments?

2) Because my IRA is small and I'll be purchasing cheap properties through tax-auctions, I want to avoid the transaction fees of companies like Equity Trust, uDirect, Pensco, etc. by making my SDIRA the owner of an LLC and me as the managing member....that being said, is there another custodian besides the big names that would better for this arrangement?

3) Is there a hold period for acquiring and selling assets that avoids UBIT (similarly to holding a property for 2 years to consider it a longterm capital gain)? In other words, at what point does wholesaling cease being active and considered passive based on how long the asset is held in the SDIRA?...I'm considering purchasing vacant lots as well as rental properties outright and having PM mow the lots and deal with rentals. 

Best,

Marc