All Forum Posts by: Angie Menegay

Quote from @Brian Eastman:

@Angie Menegay

You cannot directly or indirectly buy a property from your IRA. That is a prohibited transaction.

After age 59 1/2, you can distribute the property from the IRA to you. Since it is a Roth IRA there will not be taxes, but you will be depleting your Roth IRA for this purpose. That is probably not the best use of your Roth IRA.

Thanks @Brian Eastman and @Matt Devincenzo. That's what I was afraid :-( 

Matt - Yeah I was contemplating that route as well and wanted to make sure I'm leaving no stones unturned.

Hi experts,

There is a property I'd like to purchase (for sentimental reasons) to live in in about ~5-8 years. Due to the current high mortgage rates and low rental rates in the area, it will bleed me alive if I purchase and finance 80% of it as a rental for the next ~5-8 years (probably negative cash flow of ~$1500/month due to interests).

I have enough funds in my Roth SDIRA (with checkbook LLC) to purchase it outright and rent it out for the next ~5-8 years (break-even) until I'm ready to move into it. I totally get that it's a terrible investment (again it's because of sentimental reasons).

I presume selling the property from the SDIRA LLC to me in ~5-8 years will be a prohibited transaction? If so, I don't know how to lock in this property now to allow me the ability to live in it in the future :-(. Any suggestions on how to approach this would be greatly appreciated.

Quote from @Dmitriy Fomichenko:

@Angie Menegay, 

The purpose of setting up SDIRA LLC is to bypass the custodian and the fees associated with it and do all the transactions in the LLC. So YES, LLC absolutely can and should be the buyer.

Thank you for the confirmation! That's what I intuitively thought but couldn't find any official information from my custodian (for obvious reasons :).

Quote from @Dmitriy Fomichenko:

@Angie Menegay,

Yes, when you use IRA owned LLC the buy any investments, IRA custodian is not part of the transaction. You are the LLC manager would handle everything and sign all the documents.

Thank you so much for confirming! Now I'm really interested in moving my SDIRA to your company because I couldn't find any un-biased information on my custodian's website. I'll DM you for more info.

Quote from @Olia Fogel:

Self-Directed IRA owned LLC would be a great option for real estate investing. This way you will not need to seek the consent of a custodian to make a real estate investment or be subject to costly custodian account fees.

Hi Olia,
I have a SDIRA-owned LLC, and am looking to purchase the property. I'd like to have the LLC buy the property (instead of going through the SDIRA custodian process as you mentioned). Do I just sign the purchase agreement as the LLC and leave the SDIRA custodian out of the transaction?

I have an SDIRA with an LLC set up with it. If I want to purchase a property, can the LLC buy the property or the SDIRA has to be the buyer?

Hi Sam,

Are you currently with a broker? If so, you'll join the same MLS your broker does. In DFW, there's only one - MetroTex MLS.

We packed everything ourselves.

Hey Jerry,

We just moved twice in the past 3 months LOL. Below is my experience, and I know it all depends on the movers, not necessarily the companies, but anyhow...

First time was with Black Tie Moving due to their great ratings on Yelp. 3 guys with all supplies/equipment at $169/hour. Took 8+ hours to move since they wrapped everything (even though I didn't care for a lot of our cheap stuff and asked them not to worry). The lead guy was rather grouchy too ==> Not terribly impressed.

For the 2nd move, we opted to rent the equipment ourselves with U-Haul and went with their Moving Help service. The company we ended up was Def Motroplex Movers. 2 guys for $65/hour, if I remember correctly (there are many companies you can choose from on the Moving Help web site). We were much happier with these movers since they were friendlier and did what we told them too.

A friend of mine, on the other hand, has been using AB Moving for years and she likes them a lot. So it might be worth it for you to check them out too.

May the force be with you ('cuz moving SUCKS!!! :)