I just set up my self-directed IRA to purchase real estate. On thing I'm curious about regarding
the self-dealing aspect is being involved in the purchase. When one makes an offer where your
IRA will be purchasing the property, is it permissible to (1) make a commission as the buyer's
agent. or (2) to be the buyer agent and take no commission and factor that into the offer and/or
purchase price.

I honestly don't know. I would think that you could represent you, (your IRA) in the purchase and receive a fee. But also figure the consideration of reducing the price the commission amount is reducing your basis. What (and you don't have to answer to us) is your exit strategy?

I'm not an acctnt, nor an atty, so I would really suggest you call one and get it from the horses mouth.

The answer to your question is yes you can make a commission on the purchase or sale if you act as the agent. Make sure that the people you setup your Roth IRA with are familiar with using it for real estate purchase.

You can represent yourself as the agent no problem. As far as rolling in the commision goes, I'm not sure what steps you would take. If your financial officer isn't familiar with the real estate aspect, I suggest checking with another company or maybe a lawyer to check out the possibilities

I'm still learning about purchasing property in an IRA, but from what I have read, self dealing means selling your ira a property you already own.

An excellent source for information regarding self -directed IRA's is: www.Pensco.com. I'm also considering investing my IRA in the local real estate market here and found the Pensco people to be very professional.

Does anyone know how the Self-Directed IRA appears in the city/town land records of a property within one (I ask 'cause I'm always skittish whenever a land record has to have my personal name on it)? When I was prospecting for clients within my local city tax assessor's office online database I came across a property that a person had in his self-directed IRA. Here's what it looked like (actual person's name x'ed out for privacy):

"OWNER OF RECORD:

EQUITY TRUST COMPANY CUSTODIAN

FBO XXXX XXXX IRA
XX TRINITY ST
NEW BRITAIN, CT 06051"

After reading up on Pensco's site on some of the available options that can be in a self-directed IRA the did mention that LLC's were possible to include in the IRA...so I guess an owner can preserve some anonymity with the self-directed IRA if he includes it in an LLC.

Any thoughts?

Xeno,
I always take title in a land trust with the beneficiary being my LLC which is owned by my Roth IRA.

Hope that helps.