BiggerPockets

If time is of the essence, good luck getting Equity Trust (or most custodian) to react quickly enough.

Your IRA is buying a security in the partnership. I'd guess its structures as an LLC and you would be buying one or more units in the LLC. The managing partner would be the managing member (if they own units) or just manager (if not.) The actual owner of the unit would be something like "Equity Trust FBO Jon K account #xxx" or something similar. You should be able to find the exact wording on their web site. They probably have an "investment direction" form that you would fill out with the info about the proposed investment. You will have to provide the operating agreement, articles of incorporation or other documents about the investment. Again, check their form, it should say what they want to see.

Jon K., I've done exactly this with an ETC IRA and and ETC 401k. I can probably help you with the wording on the partnership docs, but the problem is this. When you submit your DOI to ETC, they will review it and if they don't like something about it, will refuse to fund and will require changes.

So "Time is of the esssence" and "Equity Trust" are not two concepts that work together well. This is exactly the reason that I placed my new inherited IRA with Udirect, based on @Bryan Hancock's recommendation. They have been awesome to deal with in comparison, and I am very happy with them. I still have investors in my lending business who use ETC, and I dread each transaction. In fact, I'm in a dispute with them right now about a Roth 401k contribution. They are horrible to work with.

So, if you PM or email me separately, I can probably help with the wording for the JV agreement, and then you can take it from there. I'm up early so will answer you then.

Thanks Jon and Ann. Very helpful. I PMed you, Ann.

@Bryan Hancock @Jon Holdman I know this has been covered before, but I just need clarification. This http://www.trustetc.com/new/real-estate-ira/self-directed-ira-partner.html makes it seem like I can partner with my SDIRA, but previous comments have make it seem like a prohibited transaction.

If I want to rehab and flip a house, can my IRA be a partner with the LLC that will buy the property (that I will have 100% control over)? For sake of example, the purchase price will be 20k, my SDIRA will take an undivided interest of 25%, or 5k. Rehab costs will be 80k, so 20k will come from IRA. Remainder of funds will come from me, via the LLC. 25% of profit will go back to IRA

Is this prohibited or not?

Would doing a Solo 401k get around these issues? If I undersand correctly, I can borrow up to 50% of the 401k balance up to 50k, so I can just take this money and apply it towards my flips?

Just a heads up for anybody interested, If your sole intention is to be able to borrower against a solo 401k, the best and only option from the major brokerages seems to be ETrade. The others won't let you take a loan against the 401k. I know this isn't a self directed option, perse, but they have no fees!