SEP retirement account

[Nicholas Sorrell]

I'm currently reading "Millionaire Real Estate Investor". I just read something that has me absolutely salivating. The author says that you can use your IRA funds to purchase real estate investments without pulling that money out and paying penalty taxes on. The profits from rental income and sales must remain in the account though. Can someone validate this for me? If true, can you walk me through that process? Do you just withdraw from your account how much you need for a downpayment and repairs etc? Thanks

[Jeff B.]

First, a SEP (Self Employed Plan) is just like an IRA for us W2 folks.

Second, as you've literally expressed the question, you're headed for trouble.

You *MUST* create a Self Directed IRA to allow using these funds (or withdrawing) for any purpose.