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.

[Tom Hamilton]

Thanks Will, some good info there. I don't think I'm going to venture into note investing or loans as they are far outside my knowledge and experience area. I do this very part-time and have a very good paying job (business) I am not looking to sacrifice time from. They MAY be great areas to invest IRA money, I assume you know your stuff, just not for me right now.

I do agree with you the tax advantages of RE ownership may make the IRA a non-ideal vehicle to purchase them. I'm pretty much maxed out with non-ira owned properties already though as I still need to keep lots of non-ira money liquid for other uses, so it may be IRA or nothing. If it winds up "nothing" due to the cons of IRA ownership of a few condos I'm OK with that also.

With the issues you brought up,UBIT specifically, I may decide financing is not a good route to go so I can get just two more units with IRA money as cash buys to keep it to under the 20% of my IRA I want to allocate here. That's fine - maybe I pick up one or two more in a few years if I still see the right "buys" then.

Thanks again.