SDIRA and Financing

[Daniel Cruz]

So I'm doing research on SDIRA's and my goal is to buy income producing property, but non-recourse loan terms are expensive. One lender wants 12% for 12 years, I can't make the numbers work unless I buy the property for cash. Can a SDIRA qualify for a commercial loan on a multi-family property (small apartment bldg) the terms and ROI seem better. One commercial loan I saw was 7% for 30 years, 5% for 20 years.

WARNING WHINNING SESSION TO START: (Break out the violins)

Every time come up w/ an idea to try to get out of the rat race there's always some weird rule that get's in the way. I mean expensive non-recourse loans; No conventional financing for SDIRAs! Paying UDFI / UBIT taxes - the Man just keeps you down.

WHINNING SESSION COMPLETE.

It would seem to make more sense just to by notes on good properties. Shoot, I'd like to make 12% per year for 12 years.

Thanks Everyone...

[Phil G.]

Run your deal by First Western Federal Savings Bank firstwesternfederal.com) and NASB (nasb.com). Both have more reasonable rates. I have a 30 year adjustable, currently at 6.5%, on a 4 unit building with First Western.

A solo 401(k) would be exempt UDFI. If you have any self-employment income or prospect of it, you could have a 401(k) plan drawn up and rollover your IRA to it. You can't rollover funds from a Roth IRA into a 401(k). Lenders will make the same non-recourse loans to a 401(k) as they will to an IRA.

There are lots of posts on BP on this topic.