Rental Property Investor · San Clemente, CA · Member since 2019 · 160 posts · 34 votes
When I am making an offer on a property and want to use my SD IRA funds, would that be considered a cash purchase or a loan for purposes of the contract?
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
7y
Thuy,
If you are paying for the property all cash without using a loan then it is a cash purchase. The buyer is the IRA.
If you were to use a loan to buy a property with your IRA you must use non-recourse financing, because as "disqualified person" to your IRA you are not allowed to provide personal guarantee.