My understanding of a "Check Book IRA" or Self Directed IRA in accordance with IRC Section 514 does allow for debt-financing within a SDIRA but requires a non-recourse debt instrument.

., and amendments thereto; (d) the United States of America, the state of Kansas, any other state, or any agency or instrumentality of any governmental entity; and (e) any individual who with their own funds for their own investment makes a purchase money mortgage or finances the sale of their own property, except that any individual who enters into more than five such investments or sales in any twelve-month period shall be subject to all provisions of this act.

Any lease/option triggers the due on sale clause.http://law.justia.com/cfr/title12/12-5.0.1.1.54.0.83.2.html(b) Due-on-sale clause means a contract provision which authorizes the lender, at its option, to declare immediately due and payable sums secured by the lender's security instrument upon a sale of transfer of all or any part of the real property securing the loan without the lender's prior written consent.

This is what mine says: Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's controlSo in my case, my contract is pretty straight forward.

You will want enough equity to pursue the remedies afforded to you in the note and security instrument in the event a default occurs.

The investor works out what profit they desire...lets say another $15K on top of their $17k in the deal.The investor who now owns the property puts the property on the market to sell.The investor agrees to give the homeowner the remainder of the sale proceeds after the mortgage, their $17K + profit is paid using a second lien or some other type of instrument to give the homeowner contractual right to those proceeds.

Can't get any more details from the agent but I believe they own free and clear.DOM: 45 +Flaws/reason not under contract: No outdoor/yard space due to construction of 2nd unit makes it unsuitable for nice owner occupy or family rental, front house is old & scares those not comfortable with rehab, on a busy street (but 1/2 block to city park, pool, library, downtown).

They are basicly negotiable instruments.

I'd guess maybe the security instrument is not enforceable?

I'm currently working full-time in a cost accountant role at Texas Instruments.