Updated over 15 years ago on . Most recent reply
Purchasing an existing LLC in an IRA
we are currently discussing purchasing an existing LLC that has had an offer accepted on a REO.
we need to purchase the LLC because the contract is not assignable to my IRA.
what are the pitfalls if any to this approach. we have a tenant ready who wants to rent with option to buy.
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
I'm aware of one wholesaler here who does just this process. He creates an LLC specifically for the property, then sells the LLC.
How is your IRA structured? With a custodian or as an IRA-LLC? If its with a custodian, discuss the transaction with them. They will probably have input into what you can do. If its an IRA-LLC I think I would buy the LLC then transfer the property from the LLC to the IRA-LLC and discard the LLC you just bought.
Be a good topic of discussion with your attorney and accountant.