Can I Buy a Property with a mix of SDIRA and non IRA $$$?

[Daniel Dietz]

Hello

I have done a lot of reading on SDIRA's and bought our first duplex with all cash from within our SDIRAs.

I have started looking at larger properties that I would NOT have enough cash in the SDIRA, and am trying to figure out how to leverage the SDIRA.

I know that it IS possible to mix both SDIRA funds and non-IRA funds, but that there are also a lot of rules to it. We went through this with since our SDIRA is between 3 'prohibited parties', but we ARE allowed to do this but we can NEVER change percentage of ownership etc....

What I am wondering for these possible up coming deals is this; Can we mix funds by say using an LLC that is owned by one or more (currently 3) SDIRAs for the down payment of say 25%, lets say 100K. Then, a loan would be taken out for the other 75%, most likely my the same owner(s) of the SDIRA, but this loan would be OUTSIDE of the SDIRA.

If this were possible, would that loan need to be non-recourse? I ask this as thier is a rule in SDIRA land that to paraphrase says "the SDIRA cannot benefit the owner of dis-allowed party in any way" (meaning a parent cannot buy a house and rent to a child etc....) Would the above scenario be construed as "if not for the SDIRA making the down payment, the loan would not be possible" or "if not for the SDIRA owner signing the loan papers even outside of the SDIRA, the deal would not happen?

I hope that makes sense to someone that can give some advice!

Thanks, Dan Dietz