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Updated about 1 month ago on . Most recent reply

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25
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Otis Clayton
  • Houston/DFW/Memphis
7
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25
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How do closing agents fund private money deals?

Otis Clayton
  • Houston/DFW/Memphis
Posted

In my search for private money , I have heard there people use SDIRAs to fund real estate investments and be in the first position.

I wanted to know what are the pros and cons of using SDIRAs for fund Real estate?

  • Otis Clayton
  • Most Popular Reply

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    727
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    Brett Synicky
    Pro Member
    • Solo 401k and SDIRA Consultant
    • Orange, CA
    351
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    727
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    Brett Synicky
    Pro Member
    • Solo 401k and SDIRA Consultant
    • Orange, CA
    Replied
    Quote from @Otis Clayton:

    In my search for private money , I have heard there people use SDIRAs to fund real estate investments and be in the first position.

    I wanted to know what are the pros and cons of using SDIRAs for fund Real estate?

    Lots of people use checkbook SDIRA for private lending. In fact because an IRA kicks off UBIT on leveraged real estate many people opt for private lending until the account has enough to buy real estate in cash if that is their goal. 
    If you’re just looking for money to fund deals and you’re thinking the source could be IRA money then it shouldn’t make too much a difference to you whether the investor uses their personal funds or IRA funds. Only caution is if they don’t have checkbook control and there’s a time crunch going through the custodian can cause delays and red tape to deal with.  
  • Brett Synicky
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