Self Directed IRA - doing work on property yourself?

[Daniel Dietz]

Hello,
More SDIRA questions - I am putting them under separate heading to hopefully make them more useful to others too.

I understand that I can not 'do the work on the property to make a profit'. As might be the case in a Flip that needs work or similar.

I am assuming that it would be OK for me to do normal maintenance on a rental that I would be holding long term - such as mowing, small fix-it projects, etc.. I would NOT be taking ANY pay for these, just doing them. I am assuming since I would not be doing the prohibited 'benefiting from' (as in making income off of) that this would be OK. Is that correct?

Thanks, Dan

[Brett Synicky]

@Sheryl Black You can do "white collar" work not "blue collar" work. So yes, you can guide the contractors, you just can't swing a hammer yourself. You cannot do any work on behalf of the IRA so you would not be able to use your license to facilitate a sale on either side of the transaction, even if you don't take any commission. Best to refer it out to a 3rd party real estate agent.

Yes, with checkbook control you will have a checking account that allows you to invest in as quickly as you can write a check or do a wire transfer or online bill pay.   This will avoid time delays and potential transaction fees associated with having to go through the custodian when needing any type of transaction done.  Different companies have different fee schedules...with checkbook control, it's generally more to establish and less over time...do your homework and decide which is best for you.