Self direct IRA options wholesale flip, BRRR or turnkey?

4 Replies

@David Barron

As a tax-sheltered retirement vehicle, a self-directed IRA has some limitations surrounding how actively involved you can be. Such vehicles are also designed for producing passive income and will be fully tax-sheltered with interest, rents, dividends and royalties. Flipping and wholesaling are businesses, and if conducted regularly in an IRA will generate taxable UBTI (Unrelated Business Taxable Income).

Buy and hold rentals work well. Turnkey or BRRRR approaches are both popular. There are some special considerations an IRA will have with respect to debt-financing, so you will definitely want to go over the concepts with a professional.

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