All Forum Posts by: Jeffrey Dixon

You can use a Self-Directed IRA to buy real estate. You need to work with an IRA company that will agree to hold real estate as an asset.

There are lenders willing to make a non-recourse loan to the IRA. They consider these to be riskier loans. They generally want to 40-50% down payments and the interest rates are above market to compensate.

You might want to talk with different lenders. Our SDIRA clients often use financing when buying investment properties and this has not been an issue. While there may be taxes when using financing, it depends on the net profit the property generates each year. Often with the expenses that can be written off, the tax is minimal. 

We have many clients who invest their IRA's into syndications. There are costs associated with setting up and maintaining an IRA. There are costs when making investments. One thing to keep in mind when in investing with real estate companies, is that there is an IRA called associated with the investment if the real estate company is using financing. You should discuss that with your tax advisor.

The only way to do this is to have your dads IRA and you personally buy the property as joint purchasers. He cannot invest with you or in an LLC you form.

Since you are self employed, you might want to consider a Solo 401 k instead of a SD IRA. You cannot have any full time employees to be eligible for the Solo 401k.

A Self-Directed IRA can buy investment real estate and use financing. There is much to understand about doing that. You should contact a Self-Directed IRA company to discuss if this would be a viable option for you.

As a real estate agent, you are eligible for a Solo 401k. You can make a Roth 401k personal contribution, which is $19,500 if under 50 or $26,000 if over 50. 401ks do not have income limits for Roth contributions. You can also make a business contribution. It has to be pre-tax. You could convert it to Roth later if you wanted. 

Any IRA, including an Inherited IRA can own real estate. Moving to a Self-Directed IRA would give you the option of buying real estate in the IRA. That way you would not be paying taxes on the distribution all at once. Just letting you know options.

The prohibited issue extends to businesses you are part of. This would not be permitted.