Real Estate Agent · SF Bay Area · Member since 2016 · 25 posts · 10 votes
I'd like to use my IRA account to invest in RE. What is the best way to do this without liquidating my IRA? I'd like to use the money without actually withdrawing it to avoid paying income tax on the withdrawal. What is the best way to leverage this account?
Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
10y
@Maria D.
Your posts appear to point to flipping real estate inside an IRA and to possibly take a salary. If that is the case, consider exploring the ROBS 401k which is a type of 401k that allows one to invest in their own real estate operating company and also draw a fair salary.
Real Estate Investor · Irmo, SC · Member since 2012 · 106 posts · 90 votes
9y
I understand that if I have a SD IRA, I can't make a hard money loan to myself or a related person. What if I found an unrelated person, who also had a SD IRA that needed a hard money loan. Could I use my SD IRA to make a loan to them and they use their SD IRA to make a loan to me?
You possibly could as long as you can prove in the event of an IRS audit that you could have obtained a loan from the third-party without it being contingent on you loaning your IRA funds to the third party.