Self-directed IRA & BRRR?

[Shawn Smith]

I was wondering if it's possible to combine the BRRR strategy with a self-directed IRA? More specifically, could I purchase an investment property with my IRA funds, rehab it, rent it out, and then refinance it in my name alone (No LLC), pay back the IRA, and then use the IRA funds again down the road for another down payment? Any feedback would be appreciated. Thanks, Shawn.

[Rick Pozos]

@Shawn Smith that would be a prohibited transaction. Your sdira can not buy from or deal with you as a person. Quest is a company that you can google with a bunch of online answers. They have some great people. Your IRA can purchase, rehab, rent and refi. The property would have to stay in the name of the IRA. Your ira would only be able to get out about 50%of its money to do another deal. This is just because loans made to an ira are usually only 50-65%.

@Donny Widjaja you can use your sdira money to fund others. That is a great way to be in real estate without all of the hassles, but still making 8% or 10% or whatever you want to charge. If you know some people who are flipping and trust them, I would lend the money to those people. This would be similar to the crowdfunding thing, it would just be someone that you know and trust. I think that is more valuable to you and your friend. Skip the middleman.