Investing with SDIRA - Seeking insights out of state

[Monica Westbrook]

Hello, BP forums. My husband and I are just getting started investing with a self-directed IRA. We are looking to purchase rental properties out of state. We have one LLC currently setup that is being used for one investment (non-RE). We understand we'll likely need to set up another LLC for the RE investments. We are also aware we'll need to hire a property manager. So we have done our research and are starting to focus in on an area to invest. I am just looking for some insights from the community on any advice some of you may have in going down this path, pitfalls we need to be aware of, resources you would recommend, etc.

[Dmitriy Fomichenko]

@Monica Westbrook

First, you will need to establish a self-directed IRA with a custodian who allows alternative investments. The LLC that you already have is out of question, this is your personal LLC and must not be commingled with your IRA investments. After you establish SD IRA and fund it you can start looking at investments. You are not required to have an LLC to invest in real estate, but if you wish to have more control and bypass the custodian for each transaction then you may want to consider "Checkbook IRA" (aka IRA LLC).