Use of Self-Directed IRA to Purchase Tax Liens

Entry Date: 10/27/2010

Entered By: mrsato

I'm new to Tax Lien Certificate investing but will definitely be starting to purchase. I am unsure whether I can successfully invest in Tax Lien Certificates, either at physical auctions, or online using a self-directed IRA. Because of the "no direct involvement" rules, there would be a delay in getting the IRA "custodian" to issue payments to the tax office for a succesful bid/purchase. This could negate this type of money source as viable option. I heard that a "Self-Directed IRA LLC" with "checkbook control" solves this issue. Anyone with info, comments, or experience here would be of GREAT help to me.

Entry Date: 11/01/2010

Entered By: brian1

Yes, you can invest in liens and/or deeds using your self directed IRA.  There are a few custodians out there that are very knowledgeable of the subject.  I just attended a networking conference held by Equity Trust ( and they are defintely one of them. 

Entry Date: 11/03/2010

Entered By: mrsato

I'm specifically interested in people's experience investing in tax liens using self-directed IRA vs. self-directed IRA LLC. Is there any way to buy tax liens at live or on-line auctions using a "non-LLC" type of SD IRA. In other words, is "checkbook control" (with the SD IRA LLC) the only logical way to go in this case?

Entry Date: 11/03/2010

Entered By: taxlienlady

You can buy tax liens at auctions both live and online with money from an LLC that does not have a checkbook control LLC. Having an LLC with checkbook control just makes it easier. The way that I choose to do it from my IRA that does not have this option is to invest in a fund. That way I just make one deposit to the fund and there are less fees because some IRA custodians charge you a fee per investment. The fund might be investing in hundreds of liens but you only own shares in one fund, that's considered one investment. If you were investing on your own, not only would you have to pay fees everytime you needed checks or money wires for tax sales, but you'd have to pay an annual fee on each tax lien that you hold.

Entry Date: 12/07/2010

Entered By: genroc

We offer the Ultimate IRA which is a true checkbook IRA.

Please see our website

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