Friendly lender for residential using a self directed IRA

[Mark DiPietro]

Does anyone know of a friendly lender that will allow conventional financing for a long term residential rental using self directed IRA money?

I tried to close on a property recently but the lender would not allow the close in an entity. i know this is typically common when trying to o a conventional loan and close with a LLC, but I didn't realize it was the same with a SD IRA.

In the end, we closed, but we had to use other money and it was a PITA. I want to use the money in the SD IRA still, but don't want to go through the crap again.

[Brian Eastman]

@Mark DiPietro

The IRA must use non-recourse financing. You cannot put a personal guarantee on a note where the IRA is the borrower.

Leading national providers include:

First Western Federal Savings (Rapid City)

North American Savings Bank (Kansas City)

Solera National Bank (Denver)

Titan Bank (Dallas)

Be sure to speak with your IRA advisor or CPA about using non-recourse financing and the exposure to tax on Unrelated Debt-Financed Income that will result. It is not a big deal generally, but you need to understand what you are doing.