Step 1: Negotiate as the IRA

Before any purchase agreement is signed, the buyer named on the contract must be the IRA. For real estate, the vesting typically reads Mountain West IRA, Inc. FBO [Your Name] IRA #[Account Number]. FBO means "for benefit of." Contracts signed in your personal name and later assigned create avoidable complications, and in some cases cannot be corrected.

Earnest money must come from the IRA. A deposit paid from your personal checking account is an extension of credit from a disqualified person to the IRA, which is a prohibited transaction, even if you intend to reimburse yourself.

Step 2: Submit the buy direction

The buy direction letter is the instruction that authorizes the administrator to release funds. It identifies the asset, the amount, the payee, the wire or check instructions, and the closing date. Supporting documents typically include:

• Purchase and sale agreement or subscriptionagreement
• Promissory note and security instrument, for note investments
• Operating agreement or private placement memorandum, for LLC and fund interests
• Title company or escrow instructions, with wiring details
• Invoice or settlement statement showing the IRA as buyer

Step 3: Administrator review

The review confirms that the documents are complete, consistently titled, and internally consistent, and that the account holds sufficient cash. This is a completeness and administrative review. It is not an evaluation of whether the investment is sound, fairly priced, or likely to perform. That determination is yours.

Step 4: Funding

Funds move directly from the IRA to the seller, escrow agent, or issuer. Nothing passes through your personal accounts at any point.

Mountain West IRA processes most transactions within three business days after all required documents are received. A 24-hour expedited option is available for $95. Build the processing window into your closing timeline.

Step 5: The asset is recorded

Once funded, the asset is recorded as an IRA holding and appears on your account statements. From that point, the administrator maintains the records and reports the asset's fair market value annually.

Ongoing expenses come from the IRA

Every cost associated with an IRA-owned asset must be paid from IRA funds: property taxes, insurance, HOA dues, repairs, management fees, and administrative fees. Paying an IRA expense personally is a prohibited transaction. Keep sufficient uninvested cash in the account to cover recurring obligations, because undercapitalized accounts are one of the most common sources of trouble.