Self-Directed IRA

[Theresa Pereira]

Hi. I really just have one question that's alot confusing to me. I have a basic IRA which was rolled over from a 401K. Right now it has about $83,000 in it and I still contribute $80 a month into it. I want to change it to a self-directed IRA to buy, rehab and flip properties. We live on Long Island, so the houses out here are around 130k-300k as a mid-range. Of course you will see houses below and above that, but most houses are around that price. So my $83,000 to buy a house isn't enough, I would need to get a mortgage to cover the rest and for the rehab expenses. My question: I've read that all expenses related to the property owned by the self-directed Ira must be paid from the self-directed Ira. If all the money from the Ira was invested in the property how can you use that money to pay any expenses related to it? Thanks for any insight you might give! Teri