Buying property from IRA?

[David Niles]

I am trying to help an out of town investor get out from under a property he was sold about a year ago for about double what its real value was. I am trying to work out a couple scenarios for him to just be done with it minimizing loss and stopping continued loss from his IRA.
My question is, he bought the property outright under his IRA, can he hold a note on the property?

[Jon Holdman]

Do you mean can his IRA hold the note? Yes, lending from an IRA is fine, as long as its not to a disqualified party. You would make your payments to the IRA.