Beginner SDIRA question

[Marcony Simoes]

Hi All,

Very new to BP and this is my first post, I'm looking for some specific details on SDIRA. I have been reading and learnning quite a bit about the topic, most from BP forums. Ultimately, i believe the SDIRA LLC will be the best option for me, but for now here is my question.

Can I use my SDIRA for a downpayment? say 30% and private funding for the remainning?

If so, once i rehab and sell the property how much do i have to return to the SDIRA.

Here is a very basic  example

Purchase price 100K

Funds from SDIRA 30K

Private Funds (Hard Money) 70K

Sale price 150K

Thank You all in advance!

[Dmitriy Fomichenko]

Welcome to BiggerPockets community Marcony!

You can use SD IRA to purchase a property, and you can use financing. Remember, it is the IRA (not you) who is the owner. When using leverage, the loan must be non-recourse. When the property is sold - all profits belong to the IRA, you personally can't touch any of that.

Also, if you start running flipping business out of your IRA - the income from such activity will result in UBIT tax since IRA designed to be invested passively.