Self directed IRA for RE + mortgage loans

[Deepti Mandava]

Hi - I recently started exploring the possibility of using my consolidated retirement funds from other companies to use for RE investing and have read about self directed IRA. Anyone done this ? I am looking for a nice large lot single family or a multi family unit but will need to take a mortgage loan. Would love to hear more about experiences in this space.

[Dmitriy Fomichenko]

@Deepti Mandava

Many have used self-directed IRA to invest in real estate. You can use leverage, but because you are considered to be "disqualified person" to your IRA you are not allowed to provide personal guarantee, therefore the loan must be non-recourse. There are several lenders specializing in this kind of financing for retirement accounts, I was able to assemble the list here:

https://www.biggerpockets.com/member-blogs/2810/50272-list-of-non-recourse-lenders-for-self-directged-ira-and-401k

Hope this helps!