Using an IRA LLC For a Fix and Flip

[Elbin Collado]

Hello BP,

I'm looking for advice on how to use funds in a IRA to assist in purchasing a property for a fix and flip. I have about $55k in an IRA that I would like to use $30k of towards a deal. I have another investor that will also be using $30k from his retirement account to put towards the deal. Together, I believe we can cover the down payment and rehab costs. However, we will need a loan to cover the majority of the purchase price. Does anyone have any advice on how to properly structure this deal? For example I've read/ heard that it's best to set up an LLC first and use that to buy the property while our IRAs invest in the LLC. Does this still limit us to using a non-recourse loan? If you have experience investing in this way, please share your experience and thoughts. Is anyone opposed to this investment strategy, if so, why?

Thank you in advance for sharing.

All the best,