There are many unique investing tools that can be utilized in order to make your investments work for you. Today on the podcast, we’re exploring the benefits of a checkbook control IRA. This investing tool is flexible, complex, and can be incredibly beneficial if used wisely.
On this episode, Natali and I are welcoming back Scott Maurer of Advanta IRA. Scott is here to share the intricacies of a checkbook control IRA. We’ll discuss the pros and cons of this investment type, and how you can use checkbook control to make the most of your real estate business. Scott is bringing his expertise on this topic; join us on episode 101 of Investing in Real Estate!
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True checkbook control of an IRA is vastly different from the self-directed IRAs Scott discussed on episode 65. True checkbook control is an investment tool that is utilized by an LLC in conjunction with an IRA account. Doing so allows the investor to have a checkbook to use the funds inside of the IRA, instead of making each transaction through an IRA administrator.
The LLC must be a brand-new entity in which the IRA is the sole owner. This arrangement allows the manager of the LLC to be in total control of all transactions. The manager is able to acquire assets, pay bills, and receive payments into the LLC, in accordance with the IRS guidelines.
This gives investors incredible control—instead of contacting an IRA administrator to purchase an investment, a check can be written out of the LLC’s account. Scott elaborates on the many advantages to this arrangement. For example, if an investor wanted to purchase a property at an auction, they could simply write a check on the spot instead of making arrangements with their IRA administrator.
Additionally, a checkbook control IRA eliminates excessive fees. At Advanta, a one-time fee is assessed to fund the IRA into the LLC checking account. With a regular self-directed IRA, you would typically pay a fee per transaction. And the more investments you make, the more fees will accrue.
On today’s show, Scott is sharing more in-depth information about checkbook control IRAs. We’ll discuss exactly how this account works, and how to set it up correctly. We’ll also discuss specific examples, and talk about what you must know to utilize this investment type effectively. If you want to learn more about checkbook control, and how it can help you attain passive income, don’t miss this episode of Investing in Real Estate!
Are you ready to discover passive income through rental real estate? If so, book a FREE call with my team today. We’re here to talk about your goals, and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- Why is an LLC necessary for checkbook control?
- What crucial piece of information will your bank need to set up the appropriate account?
- What are the dangers of utilizing checkbook control?
- Is there a limit to the number of investments you can own in a checkbook IRA?
- And much more!