The use of this type of structure enables the IRA to have investment and checkbook control over the IRA.

The Self Directed IRA Benefits:

1. Very few IRA custodians permit direct ownership of real estate or other non-traditional investments in an IRA, so indirect investment via the IRA-Owned LLC is usually the only choice.
2. When an LLC sells real estate or other investments, the capital gains are deferred through the IRA, like any other IRA investment. The headaches of 1031 exchanges are never necessary.
3. Ownership of the property in an IRA-Owned LLC allows you, as investment manager, to have direct, hands-on control of and investment decisions over LLC assets, including control of the checkbook. Custodian involvement and hassles are minimized, regardless of whether the investments are in securities, real estate or other assets.
4. An IRA-Owned LLC can use its IRA funding as a down payment for a real estate purchase, with the IRA-Owned LLC financing or borrowing the balance. But an IRA usually cannot directly participate in such a financing arrangement because of the custodian.
5. Since you control and handle all IRA-Owned LLC transactions, the custodian for the self directed IRA can be paid an inexpensive, flat fee of $275 per year
6. Litigation threats which accompany investments such as real estate are substantially reduced. This is done by isolating the investment inside the IRA-Owned LLC, and away from the rest of your IRA funds and estate.
7. Continues to provide deferral of income and gains inside the IRA.
8. The cost of the IRA-Owned LLC is paid for by the IRA, diminishing your out-of-pocket expenses

Strategies for Using the IRA-Owned LLC

• Purchase real estate
• Loan to others
  Note: There are some restrictions and rules for this type of transaction
• Buying or starting a business
  Note: There are some restrictions and rules for this type of transaction
• Use purchase options on real estate
• Flip properties

For more information, call uDirect IRA Services at (866) 538-3539