Can my Self Directed IRA LLC get a loan and use my IRA money as a down payment if I don’t have enough money to purchase the property outright?
Yes. Use your IRA money as a down payment and then have your Self Directed IRA LLC obtain a loan for the balance. Although, you will not be able to personally guarantee the loan and must be a non-recourse type of loan. This means if your IRA fails to make payments, the lenders only recourse is against the property alone. UBTI tax’s may apply when a loan is obtained, so consulting with your tax professional is extremely important.. Can I Loan money to others to Purchase Real Estate with my Self Directed IRA? Absolutely. As long as that person is not a “disqualified person” according to IRC 4975. A “disqualified person” includes your spouse, linear descendents, and the spouses of any linear descendent. Please refer to IRC 4975 for further clarification. How do I know that this is legal? Real Estate has been an allowed investment since the day IRAs were created. Find out for yourself by going to the Internal Revenue Service’s website and view Publication 590. On pages 40-41 you will see w
Related Questions
- I don’t have enough money in my IRA to purchase a piece of property outright. Can my Self Directed IRA LLC with Checkbook Control get a loan and use my IRA money as the down payment?
- I don’t have enough money in my IRA to purchase a piece of property outright. Can my Self Directed IRA LLC get a loan and use my IRA money as the down payment?
- Can my Self Directed IRA LLC get a loan and use my IRA money as a down payment if I don’t have enough money to purchase the property outright?
