SDIRA or IRA Loan

[Shawn S.]

Would you advise trying to structure a SDIRA in order to put the money down on a few properties, or would I be better served to take out a loan from my IRA which would allow me to get the down payment money for one or two more places? From what I have read trying to get a loan within an SDIRA seems like it has some hurdles.

[Jon Holdman]

You cannot use IRA money as the down payment on a property you're buying in your own name. It is possible to partner with an IRA, but I'm not sure a lender would consider that as your down payment.

If you take the money out, it will be subject to taxes and penalties.

It is possible to borrow inside the IRA. Not too many lenders do this, but they do exist. This will trigger taxes in the IRA, though - UDFI (unrelated business debt financed income).