Managing properties held by your self-directed IRA

[Jon Klaus]

Can you manage properties held by your self-directed IRA? Assuming you do none of the hands on work? Same question for managing the rehab.

What if your SD IRA owns part of the property but you provide property management? Again, doing no hands on work yourself?

Example: your SD IRA buys 33% of a property via a JV. You oversee the rehab, lease up, and ongoing management? Kosher? If not, what are some ways to make it work?

[Will Barnard]

Jon, I would check with the IRS on this but my take would be no and here is why. You are a disqualified party to your IRA as is any entity you own with a 50% or more interest. If your IRA owned 33% and you partnered with your IRA (which can be done but tricky) taking the balance ownership, I believe the IRS would look at that deal as the IRA owner benefiting and thus not allowed, however, I could be wrong on this so I would definately check into it.

Even if the IRS gave the green light, I would be shy on doing deals like this as it comes to close to the gray areas and IRA funds are not worth risking when you can make money without the very same risk and problems. That is my take on it.