Self Directed IRA owning LLC

[Glen Z.]

We are closing on a South Alabama MHP purchase this month, and forming a separate LLC just to own/repair/rent/sell the mobile homes. I am wondering what issues I might have with my SDIRA owning 50% of the LLC. We are using $170K capital from the IRA to buy and rehab homes. I know I cannot be the managing partner and that I cannot personally guarantee any loans to the LLC. I am not worried about UBIT as depreciation will help offset. I (my SDIRA) am taking a 6% preferred return and return of capital before sharing 50% profits.