All Forum Posts by: Kevin S.

 I can share that with you privately.  Does your company has any (state) exclusions?

 Thank you Jeff.  And what is the trade off bypassing?  There has to be.

 What does that mean for me?  I cannot invest in RE in those selected states with that custodian? Thanks.

This is a section from a SIDRA website.

1. Excluded States:
   1. Because of a variety of issues we have encountered with the following locations we will no longer accept IRA investing real estate transactions in the following areas: The State of Maryland, The State of South Carolina, The State of New York, Cook County, Chicago, Illinois, The State of Georgia, The State of Florida. This list is subject to change without advance notice. We may encounter legal issues that require immediate action which may then result in cases where investment requests are rejected.

@Brett Synicky

I copied and pasted from a SIDRA company.

Process to Invest Your Self-Directed IRA:

1. Complete a Self-Directed Investment Direction Form
   1. In Section 7 of this form, please indicate the following:
      • Asset being acquired
      • Amount to disburse
      • Disbursement method
        • Check -Need name of payee and address to send check to
        • Wire – Need wire instructions. If wire instructions are printed on a separate page type “see attached” then sign the actual wire instructions.
        • NO DIGITAL SIGNATURES
2. Provide the supporting documentation
   1. Investing your IRA in Real Estate? Provide an "Offer to Purchase"
   2. Buying units of an LLC? Provide a "Subscription Agreement"
   3. Making a Note? Provide a signed copy of the Note
3. The investor should be identified as follows:
   1. For all investments: Client First Name Last Name>, legal owner via non-trust custodial IRA with AET
   2. Be sure to indicate % of ownership on title for multiple investors
4. Signing of documents:
   1. On a go-forward basis we will no longer sign documents.
   2. Due to the titling change, the account holder will be the only one that can sign the documents (with the new vesting)
5. Excluded States:
   1. Because of a variety of issues we have encountered with the following locations we will no longer accept IRA investing real estate transactions in the following areas: The State of Maryland, The State of South Carolina, The State of New York, Cook County, Chicago, Illinois, The State of Georgia, The State of Florida. This list is subject to change without advance notice. We may encounter legal issues that require immediate action which may then result in cases where investment requests are rejected.

Hi BP members,

Anyone know why certain states are excluded from RE investment in SDIRA account?  My state is on the list.

Is Checkbook IRA breaking IRS rule in any way? It is offered as a way to bypass buying RE in SDIRA? How is that?

I read that companies offering a checkbook IRA LLC set up package cost more than that set up by an(my) attorney or CPA. Is that true?

Last question is within the previous question. I didn't know CPA can set up LLC? Is that true?

Thanks in advance.

@Brett Synicky

We are now on the same page.  I am able to withdraw without penalty.  I have a good portfolio in non retirement account and even larger in pre-tax portfolio.  If I don't start taking it out now it may grow to a point that will put me in a tax bracket I was hoping I won't be when I am retired.  So I plan to take the hit now and convert to Roth next few years.

Now I just need to talk to someone who has done it and help me walk the path.  Any BP member investor.

Next best person is CPA, as I gather from responses here.  But still need help with the whole Roth conversion thing, setting up account and investing within the Roth etc etc.

Thanks for your response, Brett.

 You are a valuable contributor to BP, especially the newbies :)

 If you believe in paying tax on the seed instead of harvest why buy real estate inside  retirement account?  Why not all outside?  That was my the basis of my original question, to move out of tax deferred account and into Roth.  

@Edward Condon

BTW, why use most tax efficient money to buy least tax efficient assets?  Regardless of what money I would think you always buy tax efficient assets???