Getting A Loan On An Investment With Self-Directed IRA Funds

[Jesse Weaver]

I'm a new investor with limited money outside of my qualified retirement accounts (i.e. Traditional IRA and Roth IRA's). My strategy is wealth accumulation through buying, renovating and then renting renovated single family homes over long periods of time. I was planning on using a self-directed IRA in order to access my IRA funds for investing in my real estate strategy.

However, I'd read that I could not personally guarantee any loans on real estate that the self-directed IRA has made an investment in. Does anyone have any experience in this area that they could share? I'd expect that a traditional mortgage would require me to personally guarantee the loan, but I'm not sure. I really appreciate any advice you have! Thank you.

[Dmitriy Fomichenko]

@Jesse Weaver

you are correct, as a 'disqualified person' you are prohibited from providing personal guarantee therefore conventional mortgage can not be used. You have to use non-recourse financing. There is only handful of lenders doing these types of loans but it is very possible to finance a property in your IRA.