Too much Equity in Self Directed IRA LLC

[Account Closed]

    Hi Everyone, I'm new to bigger pockets but I'm not new to real estate. I'm just new to doing things as smart as y'all... 

I bought my first rental property in 2000 for a relative and before I knew it he had paid for the house. Long story short, I ended a 34 year career in semiconductor manufacturing in 2016 with 6 rental properties and a lot of money in a 401K. I didn't want to depend on the stock market so I set up a self directed IRA LLC and bought 6 more rental properties here in New Braunfels Texas. The problem is I have too much equity in the properties because you have to do NON RECOURSE loans inside a self directed IRA LLC and the banks that I have found that will do NON RECOURSE only do loans at 50% LTV. 50% of my IRA LLC is equity that is just sitting there. I can only find hard money lenders that are willing to go more than 50% LTV and I'm not willing to pay the 3 points and 8.5% ARM rates that I'm being offered. I'm not ready to stop at 12 doors but I'm strapped for cash and can't pull the equity out of my self directed IRA LLC. Does anyone have any suggestions?

[Rick Pozos]

IF you are finding super great deals, get some friends who have big self directed IRAs also and borrow from them. They will not require 50%ltv since they know you and the deals are great. You may be able to refinance some of the 50% deals at 90% with friends or certain family members if they are not disqualified. Nothing says that one IRA can not borrow from another IRA.

The rates will probably be a little higher but that is to compensate for the higher leverage. Continue contributing to the ira if you can.