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deposited with a Title Company that
is providing the escrow services. The
EMD must come from your retirement
account as opposed to one writing a
personal check and providing it to the
title company. Doing so would be an
example of comingling funds and is
disallowed. The custodian will provide
the EMD to the Title Company at your
direction. In order for your custodian
to be able to fund the EMD and the
eventual purchase of the property,
funds will need to be transferred from
your existing IRA account to the SelfDirected IRA account custodian. This
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2016 EDITION - ISSUE 1
is done through a process of direction
letters you sign and provide to your
custodian who in turn communicates
with your IRA account holder (i.e. Wells
Fargo) to facilitate the transfers.
Self-directed IRA’s can be used for both
long term and short term (i.e. flips)
investment properties. For long term
holds, rental income is distributed back
to your self-directed account. Expenses
relating to maintenance and/or repairs
to the property will be paid out of your
IRA account by the custodian at your
request. In the case of property flipping,
you would work with a contractor or