All Forum Posts by: Roger StPierre

Our bank can lend to LLCs. We are a Portfolio lender so you don't have to deal with those pesky secondary market requirements. Get in touch with me to discuss.

Congrats on a good piece of work. If you do invest with your SD Plan, know that you can use leverage and finance a portion of that purchase. Non Recourse Loans are the type of loan required when leveraging investment property within a self directed Solo 401K or Self Directed IRA.

And if you don't want to use all of your funds and leverage what you want to purchase real estate inside of your SoloK or SDIRA, then a Non Recourse Loan is the way to increase your purchasing power.

Additionally, if you don't have all cash built up to purchase a rental, you can use leverage via Non Recourse loan. Be aware that the downpayment requirements in this sector are typically 40%. But that does allow one to purchase without having to wait to build up cash. Additionally, the buyer could potentially buy 2 rentals using leverage vs 1 all cash.

Buy an "in-walls" policy. They are very inexpensive and cover the interior of the unit. If a tenant destroys the inside of the unit it is All On You unless you have an "in-walls"...

And when your entity is set up and ready to go, you will need to work with a lender who specializes in Non Recourse Mortgage loans to finance the property. Non Recourse loans are the ONLY type of loan permissible under IRS rules.

Simmie,

Good move. You can fund the downpayment and closing costs and all other costs with this property through your SDIRA. All income from rents must flow into the IRA and all expenses must flow out of the IRA.

A good book to read would be Mat Sorensen's Book-The Self Directed IRA Handbook.

I see many investors using their SDIRA's to invest in apartments. There ought to be a management company in the mix to handle all the day to day activities and leases, etc. But many people do this, and use non recourse loans to finance the difference between the purchase price and their cash available inside of their account.

Cash-out refinances to get some of your SDIRA or Solo(k) funds back to use for the next investment is very common. Expect about 60% LTV on the loan side of what you have invested in the property. No seasoning needed.

You should check with your custodian to be clear on the exact verbiage acceptable to be a compliant non recourse loan.