Hello everyone. After years of stalling, I've recently taken the plunge.. Appreciative of all the advice and information the BP community provides and suspect I will be spending my nights reading as much as I can.
I decided to start small, rehabbing small single-family houses with IRA funding. I have moved from my traditional IRA to a custodial IRA and struggled through the paperwork on my first purchase. Looking back, it wasn't too cumbersome but the company was very particular on how the documents and requests were filled out. Resubmitting my way through the process, I'm sure I will get it right the second time.
I'm torn with the idea of setting up an LLC within the IRA. I understand the benefit of "check book control" but am a bit intimidated by the need for an operating document and the risk that an audit would determine a payment disallowed and my IRA standing suffer.
I've bumped up my Personal Umbrella policy to a 2x multiple of my net worth and like the comfort that I have a custodian monitoring the transactions.
Most of what I've read speak to the business benefits of the LLC, where you earn, spend, then tax vs. traditional earn, tax, spend and I certainly appreciate how the LLC would be beneficial outside of the IRA.
I am sure I'm missing something... Should I reconsider the IRA-LLC?
Help appreciated,
Brian Winkler
