SDIRA question regarding Renter wants to Purchase SDIRA Rental Property

[S Taylor]

Good Afternoon,

Questions, 1. if you have a self directed IRA and it has been rented to the same person for 10 years, and now the person wants to buy it, can you give them credit for some of the rent paid over the years Let's say the Renter paid $200,000 and you want to give them a credit of 25%, Can you?

2.  Can you act as a Bank and hold the mortgage?   What paperwork would be required?  

3. Must  you place the property on the open market with a Realtor?  

4. How does the Self-directed owner convey the Deed when the Deed states For the Benefit Of xxx IRA now conveys the Deed to the buyer so the Buyer can write off the Real Estate Taxes and interest?

5. If the self-directed buyer wanted to move the down payment for the Self-Directed IRA can they do a roll-over to a T-IRA?

Thank you all,

Taylor

[Dmitriy Fomichenko]

1. It is between you and the renter/buyer to negotiate the terms of the sale. You can give them 25% reduction in price as a credit. But why would you give your tenant $50,000? That doesn't make sense! Is the tenant related to you somehow? Will you benefit personally from this in any way?

2. Your IRA can sell the property with owner financing, essentially be the bank. You will need a promissory note and a deed of trust (or a mortgage) depending on the state. Talk to a local title company.

3. No, you don't have to put the property on the market if you already have a buyer. 

4. The same way the title will be conveyed on any other sale. Again, talk to local title company, they can handle this transaction for you.

5. You can transfer funds from one IRA to another IRA at any time.

Hope this helps.