Partner's Self-Directed IRA for Downpayment on Hard Money Loan

[Andres Vanegas]

Hey all,

Just got a foreclosure property offer accepted. My numbers check out for a BRRR but I do have some questions on my downpayment for the Hard Money Loan (HML). I have a partner whose self directed IRA we want to use towards the HML downpayment just not sure how to go about that. Would I be able to apply for the HML under my name and then just use his self directed IRA? How does that need to be structured?

I know there are several restrictions around the self directed IRA so that definitely comes first. Any thoughts and guidance would be much appreciated!

[Odie Ayaga]

I'd have to think it through more throughly and you can maybe ask some of our experts like @Dmitriy Fomichenko but i think he can just write you a loan from his SDIRA (and you guys can come up with terms) and then use that for the down payment. Most hard money lenders I know don't care about sourcing your funds for the down payment.

@Taylor L. I'm curious if you could expound on your comment. To the best of my knowledge the only disqualified persons are your descendants and ascendants (i.e. people who you could inherit from or who could inherit from you). It may be possible that what they meant is that he couldn't loan from his SDIRA to an entity owned by both of you, but I don't think there's any reason he couldn't loan directly to you.