“Prohibited Transactions"Generally, a prohibited transaction is any improper use of your traditional IRA account or annuity by you, your beneficiary, or any disqualified person.Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendant, and any spouse of a lineal descendant).The following are examples of prohibited transactions with a traditional IRA:Borrowing money from it.Selling property to it.Receiving unreasonable compensation for managing it.Using it as security for a loan.Buying property for personal use (present or future) with IRA funds.”Your IRA may not buy an investment from or sell an investment to a disqualified person as defined by Internal Revenue Code Section 4975.

You need to do an annuity calculation to figure out the payment.Simple interest loans in mortgage parlance mean that you can prepay daily.

I don't want to promise "aunt betty" I can do better than her annuity and then disappoint her.

It is simply a discounted annuity of future income.I noticed you went from 8.5% to 9.5%, that won't make much difference really in the early years.

Capitalization of income based solely on one year's worth of NOI assumes that the product behaves like an annuity.

So treat her with kid gloves and they get upset if they think they need the kids permission, so tread carefully finding out.At her age, an annuity income might be a better bet for her than a lump sum after taxes (state if any).

Someone may pledge other assets or an annuity, judgment, lease or other cash flow from some operation to collateralize a funding agreement.

A property such as this can not be valued by cash flow alone, RE is not an just an annuity income.

They are older people that want to leave an annuity for their kids.

The borrower would sign an affidavit that, in the case of alimony being more than half the qualifying income, that the borrower has no intention of marriage within 6 months, if so the party marring would be qualified as well and co-sign the note.Unmarried joint tenancy would qualify both incomes and each execute the note as borrower and co-borrower/guarantor, they would not be required to be on title or deed, but could be.Any annuity income expected to become payable to a borrower, such as a court ordered judgment granted to be paid by any insurance company, trust or any insured or bonded entity within 6 months may be included with income.