All Forum Posts by: Pat Reilly

Thanks Brian for the really informative response.  I thought I had read specific language regarding IRS prohibiting a flip, but your explanation clears things up for me.

I'm unclear on this and have not found a definitive answer through google searches. The IRS allows you to buy real estate with your IRA, with some very specific rules for doing this. However there is one rule which says that you cannot flip property, and I can't find a definition for this. So if I buy a property how long do I have to rent it out before I can sell it and it is not considered a flip? For example, if I buy, rehab, and rent for 3 months then sell, is that considered a flip (or not) by the IRS?

Hi - actually I'm not brand new since I joined about 6 months ago but never really engaged. I recently got fired up and became a PRO member (thanks to Brandon). I've been around awhile and have always been enamored with real estate - I had some rental properties in NY back in the '80s before I moved to Florida, and since then I've invested in more rentals, vacant land, new construction. I got burned in the crash of 2008, but never lost my affinity for real estate. In 2014 I got back in with a house that needed a rehab, which I got a conventional mortgage for and has since been rented out with good cash flow. Then I learned about using my IRA for real estate, went down that path, and now have 4 rental properties. I want to do some flips, and I know there is much that I have to learn in that area - financing, etc. I can offer other members my knowledge of using an IRA for RE investing, just ask and I will be happy to help.

Thanks to all for your advice, there's a lot more to it than I was aware of. 

Both my private lender and myself are new to private money loans.  What is the normal or recommended way to document the loan so that both the lender and the lendee (me) are covered?  Is it a promissory note or...?  I don't want a mortgage since that drives up the closing costs.  Thanks in advance for any response.