Anyone buying property within and Self Directed IRA

General Real Estate Investing
1

This seems like a good way do build assets fast without having to worry about capitol gains.

Anyone doing this?

2

LOTS of people are doing it.

John Hyre

3

I spent some time looking at this via searching the web and found that there are few key issues that pop-up.

  1. You need enough money in the IRA not only for downpayment but to cover any other expense including repairs, atxes etc. (i.e. the investment must be completely stand-along; can not co-mingle funds)

  2. You need a non-recourse loan. What I gather, that means the loan is not secured by the property itself. There was no mention of what rate one would pay for this, but I’ll bet its high.

  3. You need to set the IRA with someone set-up to handle this type of transaction. Again no mention of fees.

So, that a few issues that I came around from some quick reading. Maybe somebody can give you some “live-fire” experience.

4

I have looked into a few Self Directed IRA Admins (one in San Fran) and the fees were low-like $125 year, and you could put any entity in it-LLC,partnerships,business,gold…

The non recoarse could be a problem with the lender, unless one could educate them on the topic (me first!)

1. You need enough money in the IRA not only for downpayment but to cover any other expense including repairs, atxes etc. (i.e. the investment must be completely stand-along; can not co-mingle funds)

All payments and profits must also go into the IRA

There must be a good way of doing this w/ leaveraged properties

Thanks for the reply