Using a Roth IRA as a hard money lender

[Terry Koepp]

I am looking To use my Roth IRA to invest in a company that flips houses, as a "hard money Lender".This company will give me a % per flip based on the amount I invest.

I am looking to set up a Seld Directed Roth IRA (SDRIRA) for this investment and would appreciate advise on what issues to avoid in type of transaction!!!

I hope to use the tax advantages of a Roth IRA to not pay any taxes on the returns on this investment, I would appreciate your input on this investment!

Do I need to set up a LLC or can this be accomplished by directly using a SDRIRA?

I know that all gains must be funneled back to the Roth IRA and wanted to use this as an means to not pay any capital gains taxes by using the ROTH IRS account.

Please help me to not make any mistakes in this investment.

Also I would appreciate any advice in which companies that I should consider for using as a the SDRIRA custodian and why they are the best choice!!!

Thanks in advance,

Terry