Purchasing a Lot Using Your Self-Directed IRA

You may use your self-directed IRA to purchase a lot at Ocean Star Estates. Please read the following information carefully.

Deposit

If you will be purchasing a lot using your self-directed IRA, a deposit of $500 PER LOT is required to reserve it. Because you may not use personal funds to reserve a lot if you will be purchasing it using your self-directed IRA, this deposit will be held by Ocean Star Estates (i.e., check not deposited, credit card not processed). Full payment for the lot will be paid by your custodian (at which time we will void your check).

Personal funds cannot be used to reserve a lot because this will be construed as a self-dealing transaction and thus a prohibited transaction under IRC section 4975. Therefore, you must decide at the time you are reserving a lot whether or not you will be using your self-directed IRA to purchase. If you change your mind and we have already processed your deposit, your custodian will not execute the transaction for the above reason. It is possible that some custodians would allow us to refund the deposit so that personal funds were not used, and then allow the transaction.

Important: On the Real Estate Reservation Agreement form, be sure to indicate where directed that you will be purchasing the lot using your self-directed IRA.

Setting Up a Self-Directed IRA

You may reserve a lot even if you haven't selected a custodian yet or your IRA account is not yet set up. However, be sure to indicate on the Real Estate Reservation Agreement form that you will be using your self-directed IRA. We ask that you submit your account information to us no later than two weeks following the signature date on your reservation agreement. We only need to know the custodian's name, your name as it appears on the account, and the account type and number. For example, Equity Trust Company Custodian FBO Joe R. Smith IRA Account Number 12345. The account name may differ between custodians. Your funds do not have to be in the account to give us this information. If you have a representative who you are working with, we ask that you provide us with her/his name and contact information as well.

We recommend talking with Equity Trust Company if you are still in the process of selecting a custodian. You may contact Tim Debronsky at:

Equity Trust Company
225 Burns Road
Elyria, OH 44035
phone: 888-382-4727 ext. 329
fax: 440-366-3750
email: t.debronsky@trustetc.com

Self-Directed IRA LLC

If you will be setting up a self-directed IRA LLC, please be aware that the business must be registered by the Dominican Republic before you can receive your title. It typically takes two to three months to have a business registered (see the information at www.oceanstarestates.com/closing-process.html.)