Posted in Videos on 15. Feb, 2013
An IRS Approved Self Directed Cincinnati Real Estate IRA is easy to create!
Step 1: Cincinnati 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.
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 Cincinnati 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 Cincinnati 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 Cincinnati 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 Cincinnati 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 Cincinnati 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. 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. Cincinnati 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.
Contact me directly for any questions regarding the use of a self directed IRA to invest in real estate! http://www.handsoffinvesting.com