Joint Venture & Self-Directed IRA's
Hello BP!
I am interested in exploring more of the options for receiving financing through a joint venture with a Self-directed IRA. I think this is a really great way to find and attract capital to your business, while creating cash flow and helping other achieve their retirement goals. I understand the majority of the logic behind it, however, I am getting hung up on one thing. From what I have read is the investor (catalyst) will go out find and manage the deal from start to finish while the partner will finance the flip, rental, etc. through their Self-Directed IRA. If you do a 50/50 JV agreement, the cash flow, initial investment and gain from the property much flow back into the IRA, correct? If so, does the cash flow and gain flow to the investor (catalyst) as cash? Is this something that you spell out in the JV agreement?
Secondly, If you have a person IRA, can you change that to a Self-Directed IRA and invest in a rental property that you are also living in?
Any help would be greatly appreciated!