Buying rentals with my self directed 401K

[Kim Smith]

I have funds in a self directed 401K through Equity Trust.  I have been lending funds to investors that I know for 2nd position loans on their flips.  Equity Trust does not allow checkbook control over my money and so it becomes labor intensive to get through their process with each transaction.  Since I would like to buy a couple of rentals with my account, I am looking for something a bit more simple.

--- Who can recommend a company that I can move my money to that will allow me to control the activity (i.e. paying bills associated with rentals).

--- Does anyone know of companies that will give me a mortgage in the name of my self directed account?

I would rather invest in a couple utilizing a mortgage vs. paying all cash for just one.

[David Ginn]

Hi @Kim Smith

My clients use American IRA. They set up IRA/401k llcs with checkbook control.

This allows you to open up an account in IRA/401k llcs name.

Then you administer the funds not them.

This being the case it is on you to make sure, you are in compliance.

I strongly recommend lending to very experienced flippers. People that have done 100 homes or more with a proven track record.

My clients are paying their lenders 12% interest and 3.75 Points or 20% of the equityshare, whichever is greater.

Lending is a much safer way to go, when your funds are unadministered.

Thanks