Another SD IRA question... sorry.

[Tom Hamilton]

Hi. Haven't been here in a while, love the site. I've been buying a few properties since the 2008 crash and am very happy with what I own. Mostly smallish condo's on the Gulf that can be rented either weekly, monthly, yearly or daily. I'm doing yearly leases right now until the short-term (vacation) rental market recovers a bit more. They are quite profitable as is and the market is picking up ever so slightly in the buildings I own in.

Anyhow, I want a few more but now I want to purchase in my IRA account. I read a lot here and elsewhere about this but have not done it yet. I'd rather use leverage but I don't know the rules on this (mortgare with IRA ???). I have a few questions maybe some of the experienced SD IRA folks could answer?

1. I'm looking to buy maybe 1-3 more units, $75-$100k range each - so not alot of buys/sells. Is there a SD IRA provider that might be good for this lower level of transactions? I'd be depositing the rental checks back into the IRA, of course.

2. What methods are available to leverage the IRA money - not pay full cash? Can I get a mortgae somehow? Secured by other IRA investments maybe (non-RE)? This would be long-term financing, I'm renting the units and have no plans for a fast flip. I could just use IRA cash I guess - rather that than very high rate financing, but just wondering what others have found.

Thanks for any help on this.

[Will Barnard]

Tom,
To answer your last question, the solok plan (self administered 401k) for self employed individuals with no full time employess other than a spouse, is the better vehicle compared to a SDIRA (in my opinion). The advantages are: Can contribute much more per year, have borrowing provisions, and have checkbook control without the requirement of a TPA to name a few.

I just set mine up with Sunwest Trust and as far as my research showd, they were the best and most cost effective. One-time set-up, helpful and kind staff, personal to my needs and questions, etc. I would recommend them to anyone. Check them out for more info.
(I am not affiliated with them, just a client)

- Will Barnard