Leverage using SD IRA - Checkbook Control

[David Bolous]

Sorry if this is a newbie question but haven’t been able to find the answer.

Other than non recourse loans, looking for ways to get additional leverage from my SD IRA which I have checkbook control over through an LLC. The question is can the LLC partner with someone to purchase a property that will ultimately require some sort of financing.

For example, can the LLC put down the down payment, and another party obtain a loan through a private lender to fund the rest. Does it matter if that other party is a disqualified person or not?

Isn’t that what a joint venture would be?

Appreciate the help on my first post!

[Dmitriy Fomichenko]

@David Bolous

Your IRA LLC can partner with another non-disqualified party on an investment, but you have to be careful how this joint investment is structured, each party would have to contribute capital based on their ownership share so based on what you describe it doesn't seem that what you are proposing is going to work... like Brian suggested, talk to your attorney or company who set this up for you.

Question for you: why do you want to bring the partner? If you have funds for a down-payment, why not get a non-recourse loan and own it 100% in your IRA LLC?