All Forum Posts by: Neil Martinez

Instead of financing, try going through people that have Self directed IRA funds and split the rental income or give them a better rate of return that they are getting now. [LINK REMOVED]

I just wanted to thank you all for your responses....I've done some research on the IRA LLC and just have one more question.....my understanding is that there is a process when setting this up correctly (which I did not but I digress)..Lets say I did everything properly and I'm setup correctly....as the manager of the IRA LLC, would I be able to still fund my IRA to the allowable limits each year to "purchase" more units in the LLC. I hope this makes sense of what I am asking.

Let me add more details:

I recently filed papers with the state of IL to setup an LLC for my wife and myself that will be for real estate investing. We have not put together an operating agreement as of yet but in the process. Currently there is 23K pension at my wife's previous employer. The reason I said +18K to fund the LLC was because I was accounting for the 20% withholding if it were distributed directly to her. I know that there will be a 10% penalty, but with both of us still working full-time we would absorb that penalty.

In terms of a rollover, my intention is to rollover in a SDIRA for the purposes of real estate. What I'm finding is that if I wanted to purchase a property, with the funds as a down payment, that does not leave me much for expenses. Also the fees that the custodian charges (per asset fee, annual fee, one time setup fee, transaction fee)....it gets expensive! One option was investing the funds into the LLC with the caveat that my wife or I could not be a manager of the LLC and that a "3rd party" would have to manage the LLC so that form the IRS's perspective this is an arm's length transaction. I liked the idea but I don't know anyone that I could trust being the manager that would direct for my benefit.

Thanks again!

I'm just starting to invest in real estate and am wondering if I should just take the 23K to roll into a self-directed IRA or the +18K and use to fund my LLC for real estate after tax withholding? I'm finding that putting it in a self-directed is expensive and does not allow for flexibility vs if I just take a distribution to put in my LLC, I could do whatever I want. I'm looking to buy and resale as my first property investment. Interested in your thoughts and thanks in advance!