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Updated almost 8 years ago,
How to pay expenses / renovate home owned by self directed IRA?
... if the IRA runs out of funds to cover those expenses or pay for required repairs, etc.
Example:
IRA starting: $200,000
Purchase property: $180,000
IRA remaining: $20,000
Repairs needed before being able to rent/lease property: $60,000
What are legitimate (IRA-tax-status preserving) ways to get the work done? Assume I have personal cash for the difference, or the credit to get it. There's no issue with getting the extra money required, it's more about what process to use to get the work done when it would exceed available funds in IRA.
I'm not actually in this situation yet, but just trying to think of all the scenarios that could pop up after making a purchase with IRA funds & IRA owning property.