Ira Tax Liens Llc

Written by Johnny Kitchens
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A limited liability company is a mix of a partnership and a corporation. LLCs are often very small entities. When used for IRA purposes, LLCs are often simply the IRA owner. Think of it as starting a partnership between you and your IRA. Forming an LLC is one of the most popular ways for people who want to be in direct control of their retirement accounts to gain checkbook control of their IRAs. There are other means to do so as well, but forming an LLC is the most popular.

Some IRA providers require their customers to channel all decision-making through the company and give limited options for investing. More often than not, lucrative investments like real estate are not included because the process is much more complicated. With a self-directed IRA over which you have checkbook control, you can make any investment that you and your advisor deem valuable and that meets the guidelines for IRA investing.

Real estate has proven to be an attractive investment option for people who have been unnerved by volatility in the world's stock markets. The real estate market is subject to its ups and downs, too, but not to the same degree. The right real estate investments can yield incredible returns in short periods of time. By buying tax lien and foreclosed properties at auction or through some other means, investors can boost their possible returns even higher.

Buying Tax Lien Property with Your IRA

Buying any property with IRA funds can be quite complex. There are many protocols to follow to ensure you do not run afoul of the rules and subject your IRA to IRS-imposed penalties. Before you make such a purchase, you need to be sure you understand the rules and that your advisor has experience in this area. (It is sometimes the case that someone will tell you they know something and then set about learning it.) That being said, tax lien properties can yield some of the best returns on investments.

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