What are the advantages to using an IRA-LLC when investing my IRA in real estate?
You can only receive checkbook control with the IRA-LLC. With a self-directed custodian, you get more control than you get with a traditional custodian, but you still have to get permission from the custodian for every little thing you do. This is problematic, unnecessary and annoying. Further, with a time sensitive investment it puts you at a huge disadvantage – and what real estate purchases aren’t time sensitive. If you don’t move quickly, you may miss out on a great opportunity. Think of tax liens and tax deeds sold on the courthouse steps; you need to have checkbook control since payments are due after the auction is completed. With the IRA-LLC you have the checkbook, authority to write checks so you can make an investment without delay. This ensures that your IRA is able to make the best investments at the best prices.
