|
Use Your Self-Directed IRA to Purchase Your Lot!
Did you know you may use your self-directed IRA to purchase a lot in any of our listed subdivisions ?
Please read the following information carefully.
Deposit
If you will be purchasing a lot using your self-directed IRA, there is no deposit required to reserve it. Full payment for the lot will be paid by your custodian.
Personal funds cannot be used to reserve a lot if you are paying for the lot entirely using your self-directed IRA, because this will be construed as a self-dealing transaction and thus a prohibited transaction under IRC section 4975. Therefore, you must decide at the time you are reserving a lot whether or not you will be using your self-directed IRA to purchase.
Note: if interested, please discuss with your custodian the option of paying for part of your lot using personal funds.
Important: On the Real Estate Reservation Agreement form, be sure to indicate where directed that you will be purchasing the lot using your self-directed IRA.
Setting Up a Self-Directed IRA
You may reserve a lot even if you haven't selected a custodian yet or your IRA account is not yet set up. However, be sure to indicate on the Real Estate Reservation Agreement form that you will be using your self-directed IRA. We ask that you submit your account information to us no later than two weeks following the signature date on your reservation agreement. We only need to know the custodian's name, your name as it appears on the account, and the account type and number. For example, Equity Trust Company Custodian FBO Joe R. Smith IRA Account Number 12345. The account name may differ between custodians. Your funds do not have to be in the account to give us this information. If you have a representative who you are working with, we ask that you provide us with her/his name and contact information as well.
We recommend talking with Equity Trust Company if you are still in the process of selecting a custodian. You may contact John Zakel at:
Equity Trust Company
225 Burns Road Elyria, OH 44035
phone: 888-382-4727 ext. 329
fax: 440-366-3750
Download PDF Information:
Real Estate IRA Secrets
Equity Trust Direction Finder Survey
|
