All Forum Posts by: Brian Troy

The potential investor is interested in living half of the year on the property. He is a current coworker ready to retire and is not a relative. Other than being an investor, I can't think of why he would be a disqualified party; he would invest cash only. I am just wondering if the very fact that he has invested (even if it is cash) interest in the property would disqualify him. He is only able to contribute around 20% of the total cost so he would be a limited partner in the LLC.

Not sure if this is the proper forum, so please boot me over if I am in the wrong spot. But, I am thinking of creating an LLC with a around 100K from a SDIRA and I have an investor will match with 100K cash. I am wondering if we buy a property if he, who paid cash, can live in the property without violating any rules. Any input is appreciated.

Thanks for all your input. I appreciate it! Never really thought about the distribution aspect as I am focused simply on my goal; it leaves me food for thought. As far as management for collecting income, I will consult. I have heard conflicting statements but my deal sounds straight forward. Thanks.

Bump

I'm sure this has been asked before, but I could only find limited info looking through past posts. I am new, so please understand.

I'm 42 years old and currently have $100,000 in in my 457b and 401a. I will be leaving my current employer soon and need to decide what I will do with this money. I am considering a SD IRA with the hopes of buying a piece of property. My good friend lives in Northern California (I am in San Diego) and his neighbor is looking to sell some raw, untouched acreage at a great price. My intention is to leave the property as it sits until I retire and build a home. These are my concerns:

1. Can I visit the property? I know there are stringent rules in regards to using the property, but would visiting twice a year for a few days violate this restriction? I would not do any improvements nor modifications, only check things out and visit with my friend/neighbor.

2. Can I rent the property? Should someone want to use the property to park their RV and camp for a few days or a few months, would this be a violation if I reported and contributed 100% of the rental income back to the SD IRA?

3. What is the cost of setting up and maintaining a SD IRA? It seems to me my idea is pretty straight forward and wouldn't require much. I will only buy the land, report any income and that is about all until I am ready to build in 15 years.

Thanks for any input.