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Updated over 4 years ago on . Most recent reply
Self Directed Roth IRA
Looking to buy a home within the next year in the suburbs of Chicago to eventually rent. I am looking for a highly recommended Self directed IRA custodian. Does it matter if my custodian is in Illinois or out of state? How do I choose the best one for my LLC?
Most Popular Reply
It sounds like you're looking to buy a home to live in, then transfer it to your SDIRA to rent out? If so, you can't do that. That would be a prohibited transaction because you're a disqualified person and cannot do business with your SDIRA.
Either way, my opinion is that SDIRAs are not ideal for rentals anyway. You can't use your credit to qualify for loans, you can't work on the property at all, you can't use your own cash in case there's an emergency expense and the SDIRA doesn't have the funds, on and on.
If you want to continue down that road, look into Checkbook Control IRAs. Typical SDIRAs are too cumbersome for frequent transactions.