If you had 20k in a self directed IRA what is your first move?

[Derek Rocco]

So my wife and I decided to move money from an old ira into a self-directed ira. About 20k. I’ve read all the rules about IRA so I understand the money needs to go back into it. All that said what is the best move? Buy a lower priced property? Loan the money? Any tips or advice would be great. Thanks all

[William W. Humphrey]

We have a number of account holders who are working with $20K.  

Lending tends to be the most prominent. IRA loans can be originated or purchased from someone else (e.g. non-performing notes that are being sold at a discount). Of course, you, the account holder, gets to choose whether collateral is attached or not.

These days there are several online asset providers (not necessarily "Crowdfunding" which is a term that has gotten pretty murky at this point) who offer lending and/or equity based participation in real estate ventures, some of which have a low entry threshold.

Real estate can be purchased by your IRA using debt. You can put this type of deal together yourself, or you can go to a turn-key real estate provider.

Did you know your IRA can even get a non-recourse hard money loan? It can, and some of those lenders will loan in the neighborhood of 90% of the ARV.

Options on real estate are allowable.

Your IRA can be a wholesaler which often can be achieved with a low cash amount.

It is common for an IRA to be a tenant-in-common with other investors on a property. The other investor(s) can be almost any person, IRA, HSA, or entity (like an LLC).

Becoming familiar with Disqualified Person rules and Prohibited Transactions will help you to refine your desired investment strategy.  

Let me know if I can be of further assistance.