Self Directed IRA/Real Estate Investment

[Ben Jones]

If I buy a second house using funds from an IRA I am not entitled to any personal usage of this property correct? Is there any way to purchase the property, receive the tax benefit of an IRA, but still utilize the real estate for some personal usage. For example buying the property with a SDIRA and leasing it to a family member at a 'reasonable' rate?

[Jon Holdman]

Have the person with the IRA set up an IRA LLC, or the trust-based variation, then have them go to the auction with you and bring checks. None of these custodians will let you buy at auction. They just don't move that quickly.

My experience with the lawyer Guidant used was different. He was quite thorough about discussion UBIT and prohibited transactions.