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Investing in Real Estate and Tax Liens with a Self Directed IRA

We continue to talk repeatedly about self directed IRAs and by now hopefully you have a great idea of what they are and what you can do with them. If you are new to the game a self directed IRA is an IRA that allows you to invest your IRA money in non-traditional investments. Most standard IRAs with large brokerage companies only allow you to invest your IRA funds in stock, bonds and mutual funds. There are many more options available to you besides stock and bonds, such as real estate and tax liens.

How do you invest in real estate or tax liens? The below infographic describes the steps to investing in tax liens.

Self Directed IRA investing

Once we have received your IRA funds the next step would be to make a purchase. This is done through completing a direction form instructing us where to send the funds to. We will also need a copy of the asset being bought to ensure that it is titled correctly. Once we have received the appropriate paperwork funds can be wired within 48 hours if there are no problems with the forms.

What if you want to go to an auction to purchase a tax lien and need the funds immediately? Is there a solution to that problem? By creating an IRA LLC you are able to have checkbook control over your IRA.  This means you will have a checkbook with your IRA funds allowing you to cut a check immediately after a purchase is made. Below is a diagram describing the checkbook IRA LLC.

Checkbook IRA instructions

The checkbook control IRA works really well with Tax Liens, Real estate, and other investments where you want checkbook control over your IRA and where you need to cut checks very quickly.

If you have any more questions about Self Directed IRA investing or about checkbook IRAs feel free to call, email, or comment below.

Author: , Self Directed IRA Professional