What is a Checkbook IRA?

A checkbook IRA is not an average account at a bank or brokerage firm, it is an IRA plan that gives you true checkbook control over your IRA investments. With checkbook control you can act fast as a cash investor, while competing investors may be dealing with red tape and paperwork before they even make an offer. Don’t find yourself filling out paperwork and waiting for approval when you want to make an investment in your IRA, get the checkbook IRA advantage. With checkbook IRA control…

  • You write the checks
  • You sign the contracts
  • You make the decisions

The Checkbook IRA Advantage

IRA investors who don’t have true checkbook control may find themselves left with investment opportunities nobody wants. Working through a middleman and grabbing up investment leftovers is not the way a self-directed IRA should be. The new standard IRA offers true checkbook control for your IRA.

Having checkbook control can be the difference between making a good investment and losing one. Some investments are not even possible without IRA checkbook control. In a bidding environment like tax sales, you may need to write a check on the spot if you are the winning bidder. Buying undervalued property that is in foreclosure can be difficult if you don’t have flexibility, checkbook control in your IRA will give you an advantage when negotiating with the bank and the homeowner.

A checkbook IRA will also cut down fees significantly, because you are cutting out the middleman. Self-directed IRA custodians typically charge fees to make investments, write checks, execute wires, expedite documents, etc… With a checkbook IRA you can avoid unnecessary custodial fees because the IRA custodian isn’t in between your IRA and the underlying investment.

An IRA LLC with checkbook control allows you to manage cash flow much more effectively. As rent comes in, it gets deposited into a bank account and redirected into other investments or expenses. Without the IRA LLC you will need to have checks sent back to the custodian and incur fees when making other investments or paying expenses.