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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74817  
Subject: Re: Self directed IRA Date: 2/21/2012 9:46 PM
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i am in the process of opening a self directed ira
and buying a 4 FLAT WITH IT, FOR STARTS,
THEIR SEEMS TO BE A GREAT DEAL OF DOES AND DONT'S AS TO KEEPING THE IRA STATUS CAN ANYONE EMBELLISH ON PROPERTY MANAGEMENT DOES ANSD DONTS 101 FOR NEWBIES,


If you don't already know the rules, you need to STOP right now until you learn the rules.

- You need to find an administrator/trustee that will allow you to purchase real estate in the IRA.

- The IRA must cover ALL expenses for the property - taxes, insurance, insurance deductibles, repairs, maintenance, improvements, property management fees (which are necessary), due to what's known as self-dealing. Because of self-dealing rules, you are not allowed to make any repairs yourself or through companies that you have any relationship to.

- Because there is no recourse allowed on loans provided to IRAs, if you can obtain a loan (not always possible), it's ususally more expensive (rates and/or fees).

- If you violate the rules, your entire IRA can be considered to have had a premature withdrawal, and be subject to income tax plus penalties, if you are under 59 1/2.

Here is some additional information for you: http://fairmark.com/rothira/real-prohibited.htm

AJ
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