Am I thinking too far out of the box, using self directed IRA

[Loren Becker]

I have a opportunity to purchase a SFH investment in my neighborhood. I want to use my self directed IRA to fund the down payment and close the deal with a conventional 30 year fixed loan. The catch is funding the deal getting the loan then returning the money back to the IRA account prior to the 60 day transfer period.
Anyone thought of this or use this technique?
Thank you,
Loren

[Account Closed]

Loren, you can use your SDIRA to leverage a loan inside your IRA. The loan must be nonrecourse, so it's not easy to find a lender. Then, you must also pay UDFI tax since you're leveraging your IRA. Another option is to convert to Self Directed 401k. You don't pay UDFI with a SD401k. You could also just borrow the money from your SD 401k if you do convert. You can borrow 50% of your money from your 401k (up to 50k), and pay it back over 5 years with no penalty. Disclaimer..I really don't know what i'm talking about :)