All Forum Posts by: Malia B.

Oh I'm sad to have missed this one. I will be there next week!

Okay, another question :) @Brian said "This means the IRA is on title to the property, all expenses are paid from the IRA and all income flows to the IRA." Would property management fees be an acceptable expense? What if I was the property manager, or a property management corporation I owned, and charged my IRA a fee? Is that allowed?

@Brian mentions "An IRA may leverage using a mortgage. The mortgage needs to be non-recourse - meaning no personal guarantee from you." I hear lenders hesitate to finance some LLC/corporations even if the owners put a personal guarantee. Wouldn't it be harder to get a non-recourse mortgage? How is an IRA evaluated for financing? There's no credit score... :/

Thanks @Justin so the asset and it's returns are held in the IRA until retirement age or until I disburse the asset. The disbursement part makes sense to me when it's money, but if the IRA owns a title, like Brian said, does a disbursement mean a title change? If there is a mortgage, what portions would be penalized for early disbursement? The equity maybe?

@Brian Thanks so much! I'm reading and reading trying to wrap my mind around this. You said "You cannot benefit from the IRA investment such as by using an IRA owned property or paying yourself part of the income generated. Your benefit is having a secure asset held by the IRA with the potential both for cash flow and appreciation." Is there ever a point where the asset benefits can come home? At retirement age maybe? Or are there ways to move the asset out of the IRA to a personally owned LLC?

Hi BP. I'm interested in learning about purchasing property with a self directed IRA. I have a 401k from an old job that is sitting, growing slowly. If I can learn how and it makes sense I'd like to use that money to purchase a rental unit so that money can grow faster.

What's it like Turing a 401k into a self directed IRA? How is purchasing property different than using cash savings for a down payment? Who technically owns the property, and it's liabilities? Where does any cash flow go; into my pocket or back to the IRA? Can you 1031 exchange from an IRA?.... so many questions I could go on and on.

Please share your experiences, pros, cons, tricks and tips.