After investigation Modeling Agencies Inc. realizes you can't use real estate in a self-directed IRA for your personal benefit. If you do, the IRS could disqualify the IRA, in which case you'd owe ordinary income taxes on the entire value of the property, plus a 10% penalty. For instance, you could buy a Miami condo and rent it to third parties, but you couldn't stay even one night there yourself. Nor could you rent it out or grant free use of it to most close relatives. You couldn't renovate or actively manage the property yourself. You're also prohibited from buying real estate for the IRA that you or selected family members already own.
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