When building wealth, real estate investing remains one of the most powerful tools available. But what if there was a way to maximize those returns while minimizing tax burdens?
Utilizing Self-Directed IRAs and Checkbook LLCs is a game-changing strategy savvy investors can leverage to accelerate the growth of their portfolios.
Why Real Estate in a Self-Directed IRA is a Smart Move
Most investors know that traditional retirement accounts offer tax-free growth, but did you know you can also purchase and finance real estate within your IRA?
When you purchase properties inside a self-directed Roth IRA, your home price appreciation and rental income remain completely tax-free. Even better? When it’s time to cash out, you won’t pay capital gains taxes on the backend.
But let’s be real—investing in real estate through an IRA comes with administrative hurdles. Title issues, custodial approvals, and compliance requirements can slow down deals and make the process frustrating.
That’s where a Checkbook IRA LLC changes the game.
How a Checkbook IRA LLC Eliminates Friction
For busy investors who want to move quickly, a Checkbook IRA LLC—also known as an IRA LLC—offers the ultimate efficiency. With this structure, your IRA funds an LLC that you control, allowing you to make real estate transactions on the spot. No more waiting on custodians to approve every wire transfer or deal—you’re in charge.
On a recent episode of Real Investor Radio, Mat Sorenson, CEO of Directed IRA & Directed Trust Company, laid out how the process works:
An IRA invests directly in an LLC, which can be owned 100% by the IRA.The IRA account holder becomes the manager of the LLC (but not the owner, the IRA owns it).The LLC holds a bank account, giving the account holder checkbook control over real estate investments.When it’s time to buy a property, the LLC—not the IRA—appears on the title.The account holder can pay bills, collect rent, and sign contracts instantly, reducing delays and red tape.
For real estate investors handling multiple transactions—whether flipping houses, managing rentals, or issuing private money loans—this structure is a no-brainer.
Why Dominion Financial Services?
At Dominion Financial Services, we specialize in providing rental loans tailored for investors using LLCs. Our expertise ensures you get the most competitive rates in the market—backed by our price-beat guarantee on DSCR loans.
Whether you’re expanding your rental portfolio, securing financing for your next investment, or looking for a lender that understands real estate investing inside and out, Dominion makes it seamless and efficient.
Let’s build your portfolio together—give us a call today and unlock smarter financing for your investments.
