Key info on building apartments with self directed IRA

[Joy Hagerty]

We have enough funds in our self-directed Ira to buy the Lots but we will need to I have construction loans. And also we would want to keep the apartment in the self-directed ira if possible. Anyone can direct us to strategize this the best way? Should we do phases of construction or do all in for 32 units?   We have been in the acquisition mode. This is our first build project.  Thank you.  

[Matthew Bryant]

Ken

I'm a general contractor that builds multifamily along with single family.  The bank will want the land and construction all under one loan.  You will need an experienced general contractor for the construction that likely will be required by your lender.  32 units in not much, but depending on your costs of onsite and offsite improvements, and at what stage they will need to be completed, along with costs will help you determine your phasing.  There is also the absorption of the units into the market.  They don't get completed all at once so the absorption will be spread out over some months.  There are a lot of moving parts when developing, building, and holding so make sure you get all your information before committing. 

As far as the IRA. You will want an LLC for this project and the IRA will contribute the funds. If you need additional funds you will want to confirm the regulations with your IRA. Best to consult with an attorney.