All Forum Posts by: Ronald Lambert

Thanks @Rajeev Kotyan for the input.  I think I muddied the waters in my original question. Let me try to clarify.

1) My SDIRA investment in notes that I want to do, described above, is simply me as the IRA owner investing through my IRA using QuestIRA. Just like I have done as a JV investor and a private lender. It's not an LLC, no checkbook IRA, just good old boring SDIRA stuff, if there is such a thing.

2) Separate from that, and distinctly different, I have formed an LLC (IEC Ventures) in which I will work with JV partners and private investors on other NPN's. I also have a fulltime W-2 job. That is still in the start-up phase, but I brought it into the conversation in case that fact somehow would influence the answer to the question.

I hope that helps, and again, thanks for the input!  The BP community is awesome.

Great, makes sense.  No disqualified parties involved.  Thanks!

Thanks @Mark Nolan

My intent within the SDIRA is not to run my note business, but rather to invest in notes an an IRA holder using my chosen vendors. For example, my SDIRA buys the note, it boards the note using the servicer of my choice, loss mitigation is handled by the loss mit vendor of my choice, attorneys of my choice handle foreclosure if needed, etc. Your guidance is that this is too much of an active endeavor for the SDIRA?

Hey everyone, hoping to get some guidance. I have been doing some JV deals in my SDIRAs involving non-performing notes, where I am in the role of the investor. I now would like to use my SDIRA where I am in the role of handling the workout: working with vendors (servicing, loss mitigation, attorneys, etc) to work the note to resolution, but of course no direct borrower contact. I liken that process to someone owning rental properties where they select and manage the property managers, contractors, etc but never "work" on the house.

Any thoughts?  Anyone doing that today?  My CPA is not overly experienced with SDIRAs and is advising me not to go there. He states that the IRS has specifically notes Real Estate in the SDIRA guidelines, but not anything like notes.

Also, I have recently formed an LLC from which I will be JV partnering with investors to purchase and work out NPNs. I have a fulltime W-2 job, so this would be a side gig. Does the LLC existence and direction put me at more risk for IRS scrutiny within my SDIRA?

Any input would be much appreciated from the BP community.  Thanks!

To those that have responded, what has been your experiences so far with Note Investing and JV deals in a SDIRA from a tax perspective? My accountant is telling me that if I have gains from more than a couple notes per year, or invest in an LLC as part of a JV deal, the IRS will view me as running a business from my IRA, in an active manner, so the gains will be taxable to the IRA. That does not stop me from doing it, but as I am just in my first couple JVs it's on my mind. I don't hear this subject talked about in a concrete way too often, so wanted to ask. Thanks!

QuestIRA - just really easy to deal with

Also, PM me if you want a reference on a SDIRA custodian who has lots of education available. Thanks

There is a good book on the subject I would recommend your read. The Self Directed IRA Handbook. There are rules to follow, which if violated will cause your SDIRA to be liquidated with penalties and taxea. Does not sound fun. A SDIRA is an excellent tool, I love them, but do your research.