Originally posted by @Marcus Auerbach :
Originally posted by @Dawn Anastasi:
I currently manage most of my properties myself, but I have one property in an IRA which means I'm not allowed to self-manage. I use SUV Properties for that rental.
Hi Dawn, where did you hear that? I am referencing the book "Leverage your IRA" by M.Allen, 2nd eddition page 159 on Property Management:
"The rules allow you to perform ministerial service for your IRA. The selection of a rental tenant passing along rent checks and expense invoices to your custodian are generally permitted. However, providing improvements and repairs through your own labor would constitute a prohibited transaction."
Obviously you have different information...?
I went to a seminar about self-directed IRAs and investing in real estate. I was told that you cannot be an "active participant" in the property. When I purchased the property, there was rehab work to be done, but I was told that I could not do any of the work myself because that would be considered "actively particpating". However, I could select the contractor and direct the IRA custodian to do the work.
Maybe I misunderstood the "active participant" relationship with property management. I consider property management to be very active -- following up with the tenant, sending out notices if the rent is late (which means mailing via certified mail -- I cannot pay for this out of my own pocket, I was told all income and expenses need to be run through the IRA). If you somehow self-manage, there are many things that would have to be accounted for. How are you making sure you're not indirectly benefiting from your IRA?