I'm trying to figure out if I can use a ROBS to develop a turn key rental and then sell it to myself at a fair market rate.
I've seen a fair amount of discussion where using a ROBS to hold rentals is discouraged but it looks like real estate development would be OK. I just can't find whether or not I could purchase the property after it had been rehabbed without breaking some rule or law.
Self dealing is prohibited. You can ask the government for an exception but that takes time and $$$.
@Carl Fischer , I know that's true with a self directed ira but does the same hold true for a ROBS?
As far as I know it holds true for all qualified plans.
Carl is correct, this would be considered "self-dealing" regardless of the price.
Well that's a bummer. Thanks for the info though.
It is not considered self-dealing. Get an independent market appraisal and then pay the ROBS funded corporation the market price for the property. On the ROBS side, the income from the sale will be treated as an active income and there are no issues.