Foreclosure Auction Investing at the court house steps

[Greg Moran]

Question : is it possible to use a self directed IRA to purchase properties at a foreclosure auction? Is that custodian dependent?

Background : I'm trying to invest with a well-established rehabber in Roanoke VA. His business model is to purchase properties at the courthouse steps, for cash. If I'm trying to use the self-directed IRA, would the custodian allow me to loan him private or hard money for the purchase?

[Greg Dickerson]

@Greg Moran yes you can lend the money for the purchase. It doesn’t matter where the investor gets his money he just has to pay cash by a certain date.

The terms and structure of the loan are up to you not your custodian. If your IRA is Self-Directed then you are the one that makes all the decisions. You just need to make sure you know how long it takes to get the money out to fund the deal.

Also make sure you talk to an attorney to make sure you use the proper legal structure to secure your investment.