All Forum Posts by: Chris Miracle

Thanks for all of the input guys. I knew it was risky but (for a while at least) the prospect of having it as an option seemed appealing. Appreciate it.

Thanks Dmitriy. Yes, I'm aware of the potential MAJOR tax and penalty hit if I fail to come through, and that actual dollars I'd pull out would likely be closer to $250K. I am insulated against that hit somewhat because my parents have the cash available to put back into the IRA if I failed to secure the funds within the 60 days. I'm covered there and no one cares where the $ comes from when it flows back in just as long as it does!

You're obvious next question is "Why not just use their $ on the front end of the deal then?" That is an option as well, but one I'm trying to avoid for their inconvenience of the whole thing. I guess I'm just a considerate guy :)

So my question still is, would going that route be a red flag to a lender or not?

Hi everyone, I'm new here and am looking for some advice to keep myself out of trouble. Maybe some of you have been through the same scenario...

I've been dealing on a foreclosure for 8 weeks now. I'll spare you the details but it's come down to the fact that bank doesn't want to deal with financing and wants a cash deal. I can get a loan all day long, but they don't want it. I've thrown them $400K cash. The last buyer paid $700K before he totally neglected it for 7 years.

I'd plan to fund the transaction and then open up a cash-out refi on the back end to have access to some percentage (probably 70 or 80%) of the $400K.

One of the ways I could do it would be by taking money out of my traditional IRA for 60 days. It's a rollover loophole where basically you get a check and get 60 days to roll it into another IRA. What you do with it during that 60-day period is completely up to you. I know that part is legit. I know it can be done and that is not in question.

Once I try to get a loan against the property after the closing, the bank is going to want to 'source' the funds to see where I came up with the $ to buy it. They're not stupid and will look at that transaction.

So here's the question: Will they care? and will it be a showstopper in terms or getting a Cash-Out Refi or even a HELOC?

Anybody tried this? Thanks for any input!