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Updated about 4 years ago on . Most recent reply
Strategy to lend from a combination of personal and IRA funds.
SDIRA experts chime in: So I'm looking to make a loan on a performing rental property owned in an LLC. It already has a first mortgage (at around 20% LTV), so a lot of equity. 75% of the $$ would come from my SD Roth IRA, 25% from my personal funds. (if you are an SDIRA expert I know you are going to ask if I could make the loan without the IRA...and the answer is yes. But tax free is better). WHAT IS THE BEST WAY TO STRUCTURE THIS LOAN? Tag: self-directed IRA
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#5 Private Lending & Conventional Mortgage Advice Contributor
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I’m sorry, @Heath Ryans, but I wonder how in the world you got your transaction past your SDIRA custodian? Were you clear with them what you were doing?
Both you and @Eric E. are disqualified individuals with regard to investing with your SDIRA's. So is an LLC that you might own. The bottom-line rule is you cannot personally profit from an investment made with your retirement plan. These are prohibited transactions.
The two of you might want to read IRS Publication 590-A and look up Prohibited Transactions.