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Updated over 7 years ago,
Using Parents Roth IRA for funding?
Hello BP,
I have read a few forum posts about using SDIRA as a means of private lending. I still am not sure how to go about doing this, and what would be the up front costs to me or the lender (I.e. my parents) if done so properly. I would like to compete with all cash buyers but only have a 20% down payment saved for a BRRR strategy. Could I use my parents Roth IRA and give them 12% interest only with and refi/ pay them back through conventional bank financing around 6-12 months later? I would structure the deal at something like 20% down payment to them amortized at say 20 yrs.
Any thoughts or major details that I am missing? Should I speak to a tax attorney or someone similar?