Investing Self-Directed IRA LLC Funds in Foreign Real Estate

Same Rules

From a self-directed IRA LLC perspective, the procedures for investing in foreign real estate are the same as they would be if you were investing in domestic real estate. 
The buyer is the LLC owned by your IRA and the property needs to be titled in the name of the LLC and funds/payments must flow in and out of the bank account established for IRA LLC
The exception with investing in foreign real estate is that local rules and regulations will also apply.  Therefore, we suggest working with a local attorney in the country where you are buying the real estate to ensure local regulations are followed.
The key is to ensure that the IRA LLC ownership is reflected in any documents and does not refer to any personal ownership.  

Registering the LLC

With regard to registering the IRA LLC in the country where the property is purchased, this is acceptable if required based on local rules. 
If the real estate can’t be issued in the name of the IRA LLC under local rules, it would be acceptable for the real estate to be purchased in the name of a local trust or entity provided that the trust is for the benefit of the IRA LLC or the entity is owned by the IRA LLC.  While ultimately you will need to work with your local adviser regarding the local structure, we are available to answer any questions and/or participate in a phone call.  

Rental Payments

With regard to receiving rental payments, it would be acceptable to have payments wired into your domestic bank account for IRA LLC.  However, if you wished to open a bank account in the country where the property is held, you can do so if the checking account for the IRA LLC is held at a US domiciled bank (e.g., Citibank).

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About George Blower

I have the privilege of educating our clients about our products and services so that they can make informed and confident decisions about their financial future. Prior to joining My Solo 401k Financial, I served as the general counsel for a subsidiary of a Fortune 500 financial services company. Learn more about George Blower and My Solo 401k Financial >>

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