With a self-directed IRA with checkbook control, the owner has complete signing authority over his/her retirement funds. No more going through an administrator to fund investments. This type of control offers greater investment freedom, allowing the owner to manage assets with ease.
How it’s Formed
In order to obtain “checkbook control,” first establish an LLC that is owned by your IRA.
Once you establish this new LLC, a business checking account will need to be set up in the name of the LLC. The bank will require tax ID number (EIN) and a copy of your Articles of Organization.
The business checking account will be linked to your self-directed IRA funds, and you will be given a checkbook that is directly linked to that account. By electing yourself “Managing Member” of the LLC, you will then be in control of that checkbook, therefore gaining “checkbook control” over your self-directed IRA funds.
No Red Tape
Funding a transaction through a regular self-directed IRS would normally require going through a third party administrator. This requires paperwork check processing. You can skip all of this when you establish checkbook control with your IRA. Funding is as simple as writing a check.
Because you are skipping the process of going through your IRA administrator to make a transaction, you will be saving yourself from the processing fees that are typically associated with this. A checkbook control IRA will actually help save you money, leaving more funds for investment.
With checkbook control, you will have more freedom and flexibility in funding your investments. Checkbook control allows you to control your investment choices and keep pace with the speed of your investment decisions.
Why it’s Important
Success in real estate requires the ability to quickly analyze information and be willing to act on your hunches. Time is always of the essence in the real estate industry. Most deals are time sensitive and will require you to make a quick decision. Sometimes you can’t wait for people to get back to you. That’s why a Self-Directed IRA with checkbook control is so vital for real estate investments. Without having to go through a third party administrator to release funding, you can act on your instincts much faster.
Consider a Private Real Estate Investment Fund
Consider a private real estate investment fund (a “Fund”) for your next investment with a checkbook controlled IRA. Unlike REITs and other publicly traded investment options, Private real estate investment funds are not open ended and have a set offering window. When this window closes either because of the lapse of set time period or achievement of a certain level of funding, your opportunity to invest will also close. That’s why it’s important that when you’ve done your due diligence and made your decision to invest in a certain Fund that you have the ability to execute the transaction with little resistance. That can be accomplished with checkbook control.
We invite you to explore a private offering for your next IRA investment to build wealth tax-free and/or tax-deferred. If you need a referral to an IRA custodian or help setting up a self-directed retirement account, contact us and we’ll refer you to some of our associates.