New to SDIRA investing

2 Replies

Ok, so when I approach someone with the SDIRA investment opportunity, how long does it take for their current IRA, to be transferred to a Custodian and able to be used for investment?

Now, let's say I land a quadplex and intend to rehab one unit at a time over the "seasoning" period, does anyone see anything negative that can happen with this? I want to be able to use someone's SDIRA for the initial purchase of this property. Any and all tips, advise are greatly appreciated. I have analyzed all numbers in the BRRRR calculator, with worst case senecio on numbers, and My ROI is still good and the cash flow is still good. Working on my creative funding options now!

It will generally take the new custodian (self-directed IRA custodian) around 5 to 7 business days to transfer over funds from the resigning custodian once they've actually opened the account and sent out the transfer paperwork. If the funds are wired to the new custodian, they should immediately be available. If a check is received, they are usually going to hold those funds to make sure they clear the bank, that's generally 5 to 10 business days depending on their policy. Once the funds have cleared their bank then they'll be available to make an investment. I would recommend that you don't try to do this at the last minute because it is a timely process. Granted, often this process goes faster, but don't put yourself in a situation where you'll depend on it.

It sounds like you are intending to use other people's money (OPM) as the initial mortgage to purchase the property (like a hard money loan) and not traditional financing. This is fine, you'll just have to draw up a promissory note agreement, deed of trust, and any other documents that the title company and lender wants. At closing they can have their IRA fund to the title company and you'll be off to the races.

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