Real Estate

How do I structure and use my Self-Directed IRA to buy and manage real estate?

You can use an IRA LLC to purchase real estate with checkbook control.

What are common real estate investments in a Self-Directed IRA

Common real estate investments include rental properties, rental vacation homes, multi-family housing, commercial real estate, private REITs, and real estate investment syndicates. 

How does the IRA/LLC structure work?

Real Estate Basic IRA Flow (1)

How does checkbook control help me control my assets?

With the checkbook control structure, Rocket Dollar sets up a workflow for you to have more control over your asset custody. Your IRA becomes the 100% investor in your new IRA LLC, which you are then the manager of. Rocket Dollar does not go out and purchase and manage the asset for you, Rocket Dollar empowers you to have full control over how you direct investments. 

  1. Avoid lengthy and tedious deal reviews - you simply approve the real estate investment as the manager of the LLC, so no hassling Rocket Dollar to get your real estate fund to approve deal paperwork. 
  2. You retain more control over the assets. As manager of the LLC, you has the final say in how to utilize and deal with the asset without a third party interfering. 
  3. No per investment fees - Because of the streamlined approach of the IRA LLC, you simply pay one monthly fee ($15 for Core and $30 for Gold) no matter how many different real estate investments you make in the account.

How do dollars go to an from my real estate investment?

  1. Your retirement funds get rolled into the IRA, and Rocket Dollar helps them get to your IRA LLC bank account so that you can deploy those dollars.
  2. When you are buying the property, you can send a wire or write a check from your new IRA LLC bank account at our partner bank. If it is a fund, send them the dollars, but make sure are legal documents of title or investment subscription documents are titled in the name of your new IRA LLC, which will be first initial, last name format such as  "WNelson RD LLC"
  3. Rent payments go back into the bank account at our partner bank or can stay in the property or real estate fund investment indefinitely. As long as you are paying the Rocket Dollar subscription fee, you are not charged minimum balance or activity fees!
  4. If you want to sell your property, do so, and then return your dollars to the IRA LLC Bank account. 
  5. Your retirement account balance is now hopefully higher and can be used for distributions from rent or profits from the sale to fund your retirement — all without capital gains. 
Finally, make sure to record the value of your investment in the Rocket Dollar investment tracker.

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