Land Contracts - Good and Bad Experiences

[Derek Petersen]

I'm considering purchasing a seasoned land contract inside my ROTH IRA. The property has been rehabbed and is in good condition. The details of the sale:

Note sale price: $63,500 (my price), Land Contract Sale Price:$74,973(current contract balance),Land Contract Sale Closed:2/26/14 (seasonsed), monthly P&I: 606.69, Interest rate: 9%, Ammort 30 year, Balloon Date 2/26/19.

So in a nutshell, I get 9% annual plus a bump between the note price and the remaining owed at payoff, about $8632.00

Who you do this deal? Any cons of holding this in a self directed Roth? The due diligence would be similar to buying a rental property, plus having the contract reviewed by an attorney. I appreciate any feedback. I have invested in trust deeds but no experience with land contracts.