Can my SD IRA and I lend to the same borrower?

[Daniel Guillermo]

I was hoping someone here would know the answer to this, I want to make sure this is not considered a prohibited transaction. Can I lend money from my self-directed IRA to a company and also make a private loan to the same company.

Here are the details. I am looking to lend someone $50K for a rehab project from my SD IRA but I am short about $10K. Can I make them a separate $10k loan from my personal funds? If the loans are paid back separately and the funds are not "co-mingled", would this be considered a prohibited transaction?

[Loren Whitney]

@Daniel Guillermo 

Your logic is spot on about co-mingling funds. As long as the party you're lending to is not a disqualified person/entity, your particular scenario is allowable. You and your IRA funds can invest side-by-side as long as the investments stay independent of one another. You can make separate loans or a single loan. In the event you make a single loan, the lenders (you + iRA) just need to be expressed as separate parties and repaid individually.

Going forward, it's good to know that you have the option to partner with yourself. Had I known this earlier, I could have done a few additional deals myself. The important thing to remember is that all IRS rules apply when your retirement funds are at play. No personal benefit/no, no providing goods/services, etc.

I'm happy to answer additional questions or provide clarification where needed. Good luck!