Can I use IRA balance as POF

[Kevan Shelton]

I am interested in making a cash offer on a property but I wanted to know if I can use my IRA balance as POF. I plan on wholesaling the property or using hard money to flip.

[Patti Robertson]

Is your IRA already self directed? If it is, you could use it as POF IF, your purchase contract is in the name of the IRA, you don't plan on using any of your own funds, and all fo the wholesale profits will go right back into the self directed IRA. If you don't have enough in the IRA to do the rehab, you could partner with your IRA, but the partnership equity breakdown needs to be defined from the beginning, and every expense needs to be split by the partners according to their % ownership. One word of caution - Your state may have rules about how quickly the earnest money must be produced after ratification. Find out what that is an make sure you can meet the timeframe. If you can't, you could preorder a check to be [placed into escrow with a closing agent, and that agent could provide a POF letter saying they hold your money in escrow.