How can I use self-directed IRA money to participate in internet auctions for tax-lien certificates?
I’m trying to get started in investing in tax-lien certificates using money in my self-directed IRA. I’d like to try participating in online auctions for county tax sales, but many of them require you to deposit some sort of “down payment” as good faith money. Does anyone know if/how I can get the money from my IRA for my deposit, so that my IRA completely holds the entire interest in these assets? Thanks in advance for your help.
IRAman: This can be done with a self directed IRA held at a custodian or an IRA-LLC. What I have seen work best is (1) using an IRA-LLC and (2) working with a professional in IRA use and (3) working with someone familiar with tax liens and auctions. This is not an area for beginners as you can make mistakes on the IRA side as well as the auction side that could cause you a great deal of headaches.
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