Self Directed IRA - what to invest in?

[Christopher Kadletz]

I am currently in the process of rolling over $30k from my Roth IRA into a SDIRA with Equity Trust (custodian). I have never invested in Real Estate but I have been wanting to for years and feel that investing in a syndication with my SDIRA could be a good way to get my feet wet. Anything in particular I should look out for? How should I go about calculating things like UBIT? Would it be better to invest in a debt fund/ notes? Any/all insights greatly appreciated!

P.S - My day job is with a Real Estate Investment Management software provider and I talk to GPs all day so there is no shortage of deal exposure on my end... I'd like to leverage these relationships if possible. 

[Brett Synicky]

Quote from @Christopher Kadletz:

I am currently in the process of rolling over $30k from my Roth IRA into a SDIRA with Equity Trust (custodian). I have never invested in Real Estate but I have been wanting to for years and feel that investing in a syndication with my SDIRA could be a good way to get my feet wet. Anything in particular I should look out for? How should I go about calculating things like UBIT? Would it be better to invest in a debt fund/ notes? Any/all insights greatly appreciated!

P.S - My day job is with a Real Estate Investment Management software provider and I talk to GPs all day so there is no shortage of deal exposure on my end... I'd like to leverage these relationships if possible. 

Understand the UDFI tax implication. Probably won’t be a factor for the first couple or so years in a syndication on account of cost seg but check with your tax advisor to understand what kind of tax the IRA may have to pay. 

Investing in a fund can be a more passive and no UDFI tax way to invest using an SDIRA.

Don't be afraid to run a background check on the GP’s. They shouldn’t be bother by any of your questions.