Making an Investment with a ROTH and Traditional IRA

Had a really interesting case study occur this week while doing an investment with our client, Mr. Heish. He was looking to invest in a land contract note for $30,000 but only had $5,000 in his Roth IRA, and had $5,000 in his Traditional IRA. To complicate things even further, he had his friend Mr. Scroggins, who wanted to participate in the investment for the other $20,000 in his Roth IRA.  

Fortunately it’s not that complicated to title, just wordy!

We sold the contract on an assignment to Mr. Heish and Mr. Scroggins with the following wording:Customer First Homes, LLC assigns and conveys the below contract to, Equity Trust Company Custodian FBO Tony Heish IRA 16.65% Undivided Interest, Equity Trust Company Custodian FBO Tony Heish ROTH IRA 16.65% Undivided Interest, and Equity Trust Company Custodian FBO Tracy Scroggins 66.7%

A mouthful huh? It all works out and is a great example of not only how you can use both types of IRA funds for a deal, but also how you can partner on an IRA deal.