Self Directed IRA

[Valerie Couch]

I have a client who is interested in using her SD-IRA as a down payment for a turnkey investment property, wants to hold in the IRA. Has about $32k available, purchase price of the house is $76,500. A-1 credit. Have not been successful in finding a lender who can finance the balance (those who are even able to finance through the IRA are requiring 50% down and another 15% in reserve). Anybody know of any other vehicle where this could work?
The purchase is in a Cleveland, OH suburb, South Euclid.

Thanks much!

[Dmitriy Fomichenko]

@Valerie Couch

Since the buyer is an IRA - non-recourse financing must be utilized (conventional financing is not allowed with retirement accounts since that would require personal guarantee and that would be illegal with the IRA).

There is only a handful of national lenders providing such loans (but you can always find a private lender too). The terms with those few lenders are pretty decent, but there is typically 30% minimum down-payment requirement (some will have minimum loan amount too). Feel free to send me a PM and I'll provide you with the list of lenders we have been working with, one of them should be able to help.