SDIRA | Institution Recommendations

[Bob Razler]

Hello:

As I proceed down my learning path, and as I continue to analyze deals, make offers, get rejected, feel sadness.....lather-rinse-repeat....I was intrigued by SDIRA's.

I have a rollover IRA with enough money in it to fund several purchases (25% down payments anyway). So far it appears that the best way to tap this source of financing would be to move the money into a SDIRA which would then invest in an LLC I create.

I am still investigating that avenue but one of the first steps would be getting the money out of the current institution, which does not provide SDIRA's, and into one that does SDIRAs.

Does anyone have any experience with financial institutions that provide SDIRA's? Any recommendations?

Thank you,

Bob

[Dmitriy Fomichenko]

Bob, you can use SD IRA to purchase investment properties. All transactions must be arms-length and for the benefit of the IRA only, not for your personal benefits (at this time anyways).

If you decide to finance the acquisition you can not use conventional financing. You must utilize non-recourse loan. There are only select few nationwide lenders who offer such financing, you can also find many private lenders who would be willing to finance non-recourse. Since it is higher risk for the lender you typically need larger down-payment (30-50%). Here is a link of major lenders that might be helpful:

https://www.biggerpockets.com/blogs/2810/50272-lis...