Using SD IRA to purchasing houses and selling using owner financing

[AC Cooley]

Hi,

I was wondering is there anyone with experience purchasing houses using an self directed IRA and creating a note by selling that house using owner financing? If so, are there any extra steps needed to comply with the SAFE act?

Thanks

[Curt Smith]

Hi David, thanks for hooking me in. Yes it's only been since Jan of 2013, 7 months ago the start of big changes to owner financing reg changes have started to go into effect. There is no good source of reliable info including RE lawyers. I had to call my state's Bank regulators and found somone familiar with my state's specifics of Safe Act and Dod Frank changes. Then I called my SD-IRA custodian, Equity Trust. Equity Trust said they do lots of owner financing out of SD-IRAs. We plan on doing one soon out of Equity Trust and did one in our personal name 3 months ago.

Per Jan's phased in changes, I have to use a loan originator. I found only one and it cost me $695. Now I'm frustrated because I read that there's another phase in next Jan of something important... Darn it. I'll have to hook up with Bill G. to get that info again. I thought next Jan was going to be even worse than last Jan's changes... Guess this is FYI since I can't remember the details. So make 2 phone calls, 1 to your states Banking regulators, the 2nd to your SD-IRA custodian. The custodian's neck on on the block not yours for owner financing compliance is what I was told re SD-IRAs.

curt