Self-Directed Roth IRA's and LLC's

[Daniel Hess]

I want to buy rentals with my self directed Roth IRA, should I have the properties in an LLC that the Roth owns?

[Daniel Dietz]

I would say definitely yes unless you are thinking of going the Turn Key route. We do all of ours that way.

What I see as some advantages are that when you go the llc route you can use 'checkbook control', which to me is a must. I dont want be having a Custodian having to cut a check for a $25 screen repair or the $50 monthly water bill. There are so many little expenses that come up that are so easy with the checkbook control model.

The cost are fairly minimal too compared to what many think.

One other thing to think about is what 'other assets' are in your IRA? Meaning is you had rentals worth say 200K, but also had 100K of funds still in stocks those stocks might also be reachable in a lawsuit. If you had the LLC that would be an extra layer of protection for the other IRA assets.