Scenario: A church is currently renting a small space to hold their weekly services and youth events. The church is outgrowing the space and is interested in moving into a larger property. Sadly, funds are an issue for the church, making it difficult to buy a property directly.
Various members of the community start a Limited Liability Company, or LLC, and use their Entrust self-directed IRA and personal funds to buy shares of the LLC in order to acquire real property. As the LLC is oriented to investments, the owners and manager of the LLC know when they find the right property. The church can then rent the property from the LLC. The investors using their self-directed IRA funds provide Entrust with a simple Buy Direction Letter, along with the LLC Subscription Agreement (in the name of their Entrust IRA), and Operating Agreement. They also submit instructions for where they would like Entrust to wire the funds to the LLC. Once the LLC receives all of the necessary funds, it is ready to move forward and close on the property. The LLC then enters into a rental agreement with the church.
It can be very rewarding to take control of your retirement accounts and truly diversify your portfolio. Imagine the possibilities if you can find an investment that you personally believe in and are passionate about, while building wealth for the future. That is true self direction.
