Minnesota Self Directed Real Estate IRA
How to Set up a Minnesota Self Directed Real Estate IRA
with Total Check Book Control
YES, you Really Can Buy Minnesota Real Estate
with a Self Directed Real Estate IRA!
An IRS Approved Self Directed Minnesota Real Estate Ira is Easy to Set Up
Basically you have 2 choices, Low Set Up Fees & Higher Annual Maintenance Fees OR Higher Set Up Fees & Lower Annual Fees. It's almost always better paying the higher up front fees (approx $4,000) & the lower annual fees. The break even point is about 4-5 years
We chose the higher set up fees for our personal SEP Account Self Directed Ira because we expect to have our self directed SEP IRA in place for many years.
Step 1: Minnesota Self Directed Real Estate IRA:
Your first step is to set up an Unlimited IRA with a registered self-directed Ira custodian who will permit the IRA to participate in non-traditional types of investments. We personally used & highly recommend iDirect Law Group who can set this up for you.
Step 2: Existing Account Rollovers:
Once your new Self Directed Real Estate IRA has been set up your facilitator will request and direct any transfers from your prior IRA holder(s) to the new self-directed Ira account. This process can take up to a month to complete, depending primarily upon your previous IRA custodians ability to process the transfer requests in a timely manner.
Step 3: Setting up your Limited Liability Company (LLC):
An important step in the process is setting up a Limited Liability Company (LLC) for your new Minnesota Self Directed Real Estate IRA. This LLC serves as the investing platform for the retirement plan and will allow true self-direction and diversification not available in typical Minnesota IRA plans. The facilitator will customize your LLC making sure it conforms to all IRS rules & regulations. It is crucial that you work with an Experienced Qualified Facilitator to structure the LLC correctly. If you try to do this yourself and don't do it correctly, your whole plan can be disqualified by the IRS with Significant Penalties!
Step 4: Funding Your New LLC:
After your newly established Self Directed Real Estate IRA in Minnesota has received the transfer(s) of funds from your prior retirement plans and your LLC has been properly set up, it's time to set up the initial capitalization of your LLC (fund it). Your facilitator will instruct your new custodian to invest your IRA funds in the LLC. Once this funding has occurred, your self-directed Minnesota Real Estate IRA is the actual owner of the LLC, holding almost all of the cash in the LLC checking account. (a tiny portion is normally held in the actual IRA account to cover fees)
Step 5: Investing Your LLC Funds:
Your IRA, indirectly through the new LLC is now able to begin purchasing Real Estate. You now have Total Checkbook Control of your Self Directed Real Estate IRA! You can now purchase Real Estate in your Minnesota IRA simply by writing out a check.
Some of this sounds a little intimidating, but it's really pretty easy if you have the right professional assistance. We have done this personally and it went smooth as silk. You have to have a little patience, it takes some time to work the process, but just follow the directions of your facilitator and it's pretty easy. Minnesota IRA Real Estate Investing makes perfect sense for many investors, especially in the current real estate market when there are so many great deals available.
We believe that the folks at iDirect Law are the best available in today's marketplace. They are all extremely knowledgeable & helpful in setting up these Self Directed Real Estate IRA's. They set up our account for us and it went absolutely flawlessly.
We recommend visiting Guidant's site & spending an hour or so exploring the information provided. Have a notepad handy and list your questions. Then call them up, they're Extremely Helpful and can answer any questions you have. After that you'll have a excellent overview of the process and can decide if it's what you are looking for.
If you have any questions about buying Real Estate in a Self Directed Real Estate IRA,
Minneapolis Self Directed Real Estate IRA
Email Brenda or call her Today at 520-918-5968
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