I’m trying to purchase real estate within a self-directed IRA. Does the property have to be owned free & clear, or can it have a mortgage?
Your properties can have a mortgage if you buy them in an LLC. Just file the paperwork to form an LLC or corporation. Once you form your business entity, you use your IRA to buy stock in your business entity. Then, through your business entity, you can use those IRA dollars to purchase groups of single-family homes or apartment complexes. You’re able to do this because, once you invest your money into any business’ stock, that money becomes money a business can use to make other acquisitions. In this case, it’ll be your LLC or corporation making acquisitions with the money invested in it from your self-directed IRA. But, be sure to consult a CPA. They should be able to direct you appropriately.
Related Questions
- I don’t have enough money in my IRA to purchase a piece of property outright. Can my Self-Directed Retirement Solutions, LLC get a loan and use my IRA money as the down payment?
- I’m trying to purchase real estate within a self-directed IRA. Does the property have to be owned free & clear, or can it have a mortgage?
- Can my Self-Directed IRA LLC purchase real estate?
