Oxford, MA · Member since 2016 · 15 posts · 0 votes
Good afternoon BP friends,
I'm looking at setting up an SDIRA for the specific purpose of buying a single property - an undeveloped lot - and I'm trying to determine if it makes any sense to use an LLC and/or have "checkbook" control for this particular SDIRA.
My initial thought is that since this SDIRA would be to buy a single piece of undeveloped land and then hold that property as an investment for the next several years, that the additional complexity and expense of an LLC and checkbook control would be unnecessary. I don't anticipate needing to add or spend funds from the account on any regular basis outside of paying the property tax on the land each year.
Anyone have any thoughts on the subject to share?
Also, recommendations for a reputable and inexpensive custodian for the SDIRA is also appreciated.
Unless you have other non-traditional investments in mind, the checkbook control provided by an IRA LLC would be more tool than you likely require.
Check out Kingdom Trust Co or IRA Services Trust Co. Both provide good service as custodians and have flat fee-per-service models, rather than a percentage of account value, which makes much more sense for what you are doing.
I agree about not using an LLC unless you are also looking for liability protection.
As far as IRA custodian to use, hands down IRA Services Trust Company as they have been in business since 1978 so have had decades to be tested by regulators whereas many others have maybe been in business much less.