What is an IRA-LLC?
An IRA-LLC is a Self Directed IRA's ownership of a Limited Liability Company. Some in the industry also refer to this as an ICO, or IRA Company. An IRA-LLC is a special purpose limited liability company which is either fully or partially owned by an IRA. The self-directed IRA funds can be legally transferred to the IRA-LLC in exchange for member units, or shares, and then used within the structure for self-directed investment. Newman Asset Management has helped many clients set up an IRA-LLC to invest in areas such as real estate, hard money lending, life settlements, private placements and businesses, just to name a few.

What are the Benefits of an IRA-LLC?
Many! Some of the benefits apply to all holders of an IRA-LLC and some are more investment related. Let’s take a look at a few:

• A significant benefit, especially in today’s economic climate, is that you manage and have hands-on control of your money. So no more waiting on a stock broker, or custodian, to close that deal on a tight deadline. Need to write a check today to get into a time sensitive investment? You can do it!
• An IRA-LLC allows you to participate in investments that may be considered “non-traditional” by the lay public. For instance, you can buy and hold real estate within an IRA-LLC, or purchase shares in a private placement investment. Of course traditional stocks, bonds, and mutual funds are still available investments.
• Just like more traditional IRA accounts, the IRA-LLC’s gains on investments are deferred within the IRA. One area this helps tremendously is in real estate. You can structure it so you do not have to mess with a 1031 exchange. (If you don’t know what a 1031 exchange is - don’t worry - you won’t need one.)
• Since you are the manager of the IRA-LLC, you have direct hands-on control of what happens, or needs to happen, with your investments. Again, no more waiting on a broker or custodian to get something done.
• While an IRA cannot participate in a financing arrangement, an IRA-LLC can do so. This allows the IRA-LLC to put up a down payment and use financing for the remainder of an investment.
• Unlike a custodial held IRA, where you are charged for every transaction, report, and a percentage of your assets, you only have a nominal $200-$300 flat fee with an IRA-LLC...even if you do 100’s of transactions.
• Threats from lawsuits and litigation being tied to your other assets are greatly reduced as these IRA funds are in their own LLC, away from other possible retirement funds or personal assets.

As you see here, holding your IRA in an IRA-LLC has many strong advantages compared to traditional IRA accounts and custodial-held, self-directed IRA accounts.

What will Newman Assets help me with in this setup and investment process?
Quite a bit. Though many clients have mentioned the hands-on help with using the money in investments correctly once setup, we do a great deal in the early setup stages as well. Newman Assets, in conjunction with our association partner - the National Association of Financial and Estate Planners (NAFEP) - makes sure all the following occurs so that you do not miss out on any opportunities:

• Setup of the LLC
• Filing of state articles
• Filing of Tax Identification Number with the IRS
• IRA, prohibited transaction compliant operating agreement
• Setup and operating guide
• Banking authorizations for checking account, and assistance with account setup
• Handling your rollover with American Estate & Trust, the IRA custodian
• Audit Support Warranty, provided with all IRA-LLC’s by NAFEP
• Ongoing consulting and support services.

Sounds like what I need. What do I do now?
Great! This is the simple part. Contact us by phone (281-580-1526 or 888-254-0609) or email ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) and our staff will get some basic information from you to get started. From there we will hold your hand through every step until you are setup. This usually takes a couple of weeks at most.

So, you mentioned real estate, but what else do your clients invest in?
As the saying goes, you name it. Being that an IRA-LLC is still owned by an IRA, it still has to follow the same rules as noted in publication 590 by the IRS. But here are some of the accepted investments clients have invest in:

• Real Estate - residential, multi-family, large commercial, foreign
• Funding a business or passive investment
• Hard money lending (...many clients are getting 12% here in the summer of ’09, with strong collateral)
• Private placements or offerings in a variety of fields
• Precious Metals, such as Gold, Silver, and Platinum
• Many more! (Would you believe race horses or fish farms? Don’t laugh - they are making a killing!)

So, as long as the rules are followed, your investment is usually only limited by your imagination, drive, and desire.

Ready to get started? All it takes is a call (281-580-1526 or 888-254-0609) or email ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ).