Buy tax free real estate or other investments with your IRA.
In order to purchase real estate (or other investments) with an IRA you will need to create an LLC. The LLC will be the investor of the property, stocks, bonds, etc. The funds to be used will be those of your IRA and other investor's IRAs and/or monies. This is not your common garden variety LLC and specific documentation is required, therefore, many companies will charge you a bundle of cash to put one together.
Do not pay $1600 to $4500 or more for some company to build your Self Directed IRA owned LLC (also known as Checkbook IRA-LLC or IRA qualified LLC). We offer a comprehensive package for any state that includes:
All the government forms and applications
Custodian/Facilitator list
IRA law
LLC law
Information on the prohibited IRA transactionsand prohibited investments.
Information on the exemptions to the IRA prohibited transactions
A guide along with a comprehensive Q & A section on the workings of an IRA funded LLC
Operating Agreement (very important document)
Subscription Agreement (very important document)
Standard documentation for LLC (certificates, ledgers, meeting minutes)
A library of information on the subject at your fingertips.
Information on notifications provided by the (DOL)department of labor on the subject of IRA funded LLC’s
NOTE: All the information above is included in the CD that we will mail to you. Customer must specify state were IRA funded LLC will be created (if state is not specified within 7 days of payment the default shipping state will be used at that time).
Advantages of a Totally Self Directed IRA Funded LLC:
Instantly invest your retirement by just writing a check.
Have all profits from those investments flow into your retirement tax free.
Combine and move your SEP, 401K, Keogh, Roth IRA, profit sharing plans and other retirement accounts into your checkbook IRA.
LLC business structure provides asset protection (your retirement is protected from lawsuits).
Invest in what you know about the most.
Custodial fees are much lower because the IRA has one asset, the LLC.
Absolute decision making power because there is nobody to ask for permission.
Investment diversification because real estate, tax liens, stocks, tax deeds, options, futures, bonds, mutual funds and much more can be bought.
The LLC may have multiple investors, which may include relatives of the IRA owner and friends.
Details:
The CD that you will be purchasing will come with the most important document you need the Operating Agreement.
Why is the operating agreement important? In this business structure the owner of the LLC is your IRA. You are the manager with check book control to the funds in the IRA qualified LLC. The operating agreement must reflect this. The operating agreement we offer you is drafted to reflect IRS codes and department of Labor rules. The wording is specific to an IRA funded LLC and is not the same wording used in the generic subscription agreements sold by sites that create common LLCs .
It is the operating agreement that lends credibility to the IRA funded LLC's separate existence. It is the LLC's nature or "separate existence" that offers the owner the "limited liability" and protection of your investments. In addition, this document aids in preventing financial and management misunderstandings.
A Custodian has to be hired in order to satisfy IRS rule requirements for an IRA owned LLC. Many custodians require an operating agreement before approving initial investment in an LLC. Finally, the financial institution where the checking account for the IRA owned LLC is opened, may also require that you provide an operating agreement.
Another very important document is the Subscription Agreement. The Subscription Agreement is also provided to the Custodian. What is a Subscription Agreement? The subscription agreement contains specific "purchase language." The subscription agreement is provided to the potential investor (individuals that would like to become members and that includes your IRA) of the IRA owned/funded LLC. Yes, several investors can aggregate their IRA's or other retirement accounts into the business in order to maximize the capital. This is a great idea to consider for large value investments and remember this is perfectly legal.
Ready to Purchase?
Price of CD library detailed above is $39.99 (price does not include shipping, handling and insurance).
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Questions and Answers:
1.Is my purchase safe? We provide PayPal* a (https://) secure site for your purchase. We offer Protection for Your Purchases. Please note: Our return policy is for exchange only.If CD is received damaged it will be exchanged for one of the same state within 30 days of purchase.
2.Is the information provided complete for every state? Yes.
3. Must I form the IRA funded LLC in my state of residence?
No, you can use any state you prefer. Delaware, Nevada and Florida are popular options. As to the reference that some states consider LLCs as securities and that you must avoid those states. This is not necessary. Many LLCs sell securities known as "units". If the LLC is going to have investors then it will sell units in exchange for money (the funds). For example, the LLC will sell units to your IRA that is being held by a Custodian (if the custodian allows such investment). Many will ask "what about the securities regulations of the states in question." Fortunately, smaller LLCs, even those that plan to sell memberships to passive investors, usually qualify for securities law exemptions from the federal government. For example, SEC rules exempt the private sale of securities if all owners reside in one state and all sales are made within the state; this is called the "intrastate offering" exemption. Another federal exemption covers "private offerings." A private offering is an unadvertised sale that is limited to a small number of people (35 or fewer) or to those who, because of their net worth or income earning capacity, can reasonably be expected to be able to take care of themselves in the investment process. Most states have enacted their own versions of these popular federal exemptions and many of the exemptions available do not require an application (because they are "self-executing"). If you have any specific questions regarding your state and their variation to the exemptions provided by the federal government then contact your state's securities agency, which typically posts the state's exemptions rules and procedures. To find your state securities agency, go to your secretary of state's website or you can visit www.nasaa.org under "contact your regulator."
4. What are passive investors?
Passive investors are those who aren't involved in the day-to-day operations of the business. They provide funds only.
5. Can the IRA funded LLC invest outside the country?
Yes, there are a lot of investment opportunities outside the country that are now available to you.
6. Can the IRA funded LLC make loans with its funds? Yes, you can make loans to any person or entity if it does not constitute a prohibited transaction.
7. Must I have a custodian for my IRA that is investing in an IRA funded LLC or any LLC?
Absolutely, all IRAs (no matter what they invest in) are required to be held by a custodian approved by the IRS. However, only a few custodians allow self-directed IRAs.
8. Can the IRA funded LLC borrow funds to finance a real estate purchase?
Yes, but you will have to obtain a non-recourse loan from a lending institution or a non-recourse type of promissory note from the seller of the property. The reason, because the loan can not be personally guaranteed by the owner of the IRA. The lending institution's only resource for securing the note is on the value of the property. In addition, when you receive a loan unrelated debt financing income tax will apply.
9. What are the prohibited investments?
The only thing that the IRS says that you cannot purchase using your IRA is Collectibles and Life Insurance Contracts. Thus, you can invest in anything that is not a prohibited investment or a prohibited transaction. Prohibited transactions are considered any action that constitutes “self dealing.”
10. What in specific are the investments that are prohibited?
The IRS outlines the following types of investments as Prohibited Investments; artwork, rugs, antiques, metals, gems, stamps, coins, alcoholic beverages, life insurance contracts, stock in a S-corporation and certain other tangible personal property.
11.What is a prohibited transaction?
The IRC Section 4975 defines a prohibited transaction as follows: "Any improper use of your IRA account by you, your beneficiary or any disqualified person. Disqualified persons include the fiduciary of the plan assets and members or your family (spouse, ancestor of lineal descent, and any spouse of a lineal descendant." According to the IRS, siblings, aunts, uncles, cousins and step relations are not included in the definition of disqualified persons. The transactions not allowed are: 1. Investing in a prohibited investment. 2. Lending of money between a plan and a disqualified person. 3. Furnishing goods, services, assets or facilities between a plan and a disqualified person. 4. Transfer to, or use by, a related party of the income, funds or assets of an IRA. 5. Benefiting someone other than the IRA. 6. Doing business with a disqualified person such as; a sale or exchange, or leasing/renting of property between a plan and a disqualified person.
12. Can my IRA funded LLC purchase Real Estate I already own?
No, this would be considered a prohibited transaction, or “self dealing” (see IRC Section 4975).
13. Can I buy vacation property?
Yes, and doing so would not constitute a prohibited transaction. However, you cannot vacation there.
14. In addition to real estate what investments can my IRA funded LLC purchase?
Limited liability companies, real estate commercial and residential, commercial paper, tax lien certificates, promissory notes, corporate debt offerings, trust deeds/mortgages, commodities and futures, mutual funds, stocks, bonds, annuities, limited liability partnerships, hunt lease investments, race car investments, treasuries, bank CDs, timberland investments, currency exchange, timeshares, real estate options, and much more.
15. How do I know if an IRA funded LLC is right for me?
Are you tired of having your investments restricted to stocks, bonds and mutual funds? Are you ready to invest in real estate or in something that you know about? Do you want the control to invest as you like? Are you ready for better returns than you’ve been getting? Are you ready to see your retirement increase to the point where you can retire? Are you ready to be in control? If the answer to any of these questions is yes, you are ready for the Self-Directed IRA funded LLC.
16. Who notifies to the IRS any discrepancies or prohibited transactions?
Your Custodian has the duty (assigned by IRS rules) to report any discrepancies or prohibited transactions.
Have any more questions use our contact form you will receive a response withing 24 hours.
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