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<p class="MsoNormal"><span style="color:#1F497D">I don't know the answer, but that's only 99% worth of interests. Is the third member 2%?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">1320 University St<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">Seattle WA 98101-2837<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">phone 206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#1F497D">fax 206-625-9040<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Rob Rowley<br>
<b>Sent:</b> Thursday, November 20, 2014 3:16 PM<br>
<b>To:</b> WSBA RPPT; WSBA RPPT Probate & Trust Discussion Forum<br>
<b>Subject:</b> [WSBARP] Using Self-Directed IRA for Real Estate Investing<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Would like to hear from counsel who has experience using a self-directed IRA for real estate investing. I am familiar with the great RPPT article from the summer and am
using it. Do have some prior experience with the practice in the context of ‘hard money loans’ with no ‘disqualified’ individuals but have a more of a technical question.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman","serif""> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Using an LLC where there are three members and one of the members has a 49% interest, the second member has a 49% interest and a third member has a 1% interest. All three
members are unrelated. Having one of the 49% interest members borrowing money from a lineal ancestor using a self-directed IRA.. Normally would be problematic because the borrower would be a “disqualified individual". 26 USC 4975(e)(2). The 49% rule from
</span>26 USC 4975(e)(2)(G),<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Thanks.<o:p></o:p></p>
<p class="MsoNormal" style="line-height:12.0pt"><b><span style="font-size:10.0pt;font-family:"Times New Roman","serif""> </span></b><o:p></o:p></p>
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R. Rowley</span></b><span style="font-size:10.0pt;font-family:"Times New Roman","serif""> | Attorney at Law</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:10.0pt;font-family:"Times New Roman","serif"">505 W. Riverside Ave, Suite 500</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:10.0pt;font-family:"Times New Roman","serif"">Spokane, WA 99201</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:10.0pt;font-family:"Times New Roman","serif"">Telephone: (509) 252-5074</span><o:p></o:p></p>
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<p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:10.0pt;font-family:"Times New Roman","serif"">Email:
</span><a href="mailto:rob@rowleylegal.com"><span style="font-size:10.0pt;font-family:"Times New Roman","serif"">rob@rowleylegal.com</span></a><o:p></o:p></p>
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</span><a href="http://www.rowleylegal.com/"><span style="font-size:10.0pt;font-family:"Times New Roman","serif"">www.rowleylegal.com</span></a><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Times New Roman","serif""> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Times New Roman","serif"">Practice concentrated on business, real estate and general legal matters in Washington and Idaho.</span><o:p></o:p></p>
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