FROM THE DESK OF A SELF-DIRECTED IRA EXPERT KAAREN HALL
“prohibited
plex in the name of the IRA. The custodian signed
transactions” which usually involve “disqualified
the offer, sent it off to escrow. The earnest money
people”.
your
deposit was disbursed from Bill’s IRA. Rather than
fiduciary and members of your family (spouse,
use borrowed funds, Bill partnered with another
ancestor, lineal descendant, and any spouse of a
real estate investor (thereby avoiding the UDFI
lineal descendant). So, it would be a prohibited
tax). His IRA closed on the property and tenants
transaction for his son to have use of the property
moved in. His son still could not be a tenant but
owned by his IRA.
the investment was made and began to cash-flow
This
brought
up
the
Disqualified
issue
persons
of
include
right away.
If you put yourself in Bill’s shoes, you can see it
was an excellent idea to use IRA funds to buy a 4-
I do a lot of public speaking to explain how self-
plex and have his son live there. The IRS would
directed IRAs work.
disagree so we had to find some work-arounds.
retirement funds could be invested somewhere
So many people feel their
besides the stock market and for over 35 years
Bill opened his self-directed IRA and had the funds
you’ve been able to invest your IRA into anything
transferred into it. Then he made an offer on the 4-
except life insurance contracts and collectibles.
Kaaren Hall
Kaaren has helped hundreds of people self-direct their retirement savings. A native of California,
she has a 16-year background in Real Estate, Property Management and Mortgage Lending. She
has worked at such companies as Bank of America, Centex Homes, Pulte Homes and Indymac
Bank. She's held a real estate license in Washington, Texas and California and a Life & Health
license in California.
Her company, uDirect IRA Services, LLC, offers self-directed education and services to investors, providing excellent
customer service. Kaaren is a public speaker and master networker. A mother of two, she lives in Orange County.
If you have a question about how to use your IRA to self-directed you can contact us here at [email protected] or at
714.460.5505. Our website address is www.uDirectIRA.com.