Non-recourse refinances?

Question

Hey BP! Has anyone heard of a lender offering non-recourse mortgage refinances that do 70% LTV instead of LTC?

I found out that I could use my self-directed IRA to fund a hard money loan.  I'd love to purchase a small rental property that needs some repairs, fund the purchase and rehab with hard money, and then refinance at 70% LTV - all in the name of my IRA.

Would welcome any suggestions you all have. Thank you!

Account Closed · Answer

not exactly it must be a hands off transaction thru a guardian trust account with a lot of restrictions      https://www.udirectira.com/

Dmitriy Fomichenko · Answer

Na K.

we work with several nation-wide lenders who do non-recourse loans and would be happy to provide you a list, just send me PM or visit my website.

However, most of them will probably require seasoning, in other words they will use the purchase price for determining the value or can do an appraisal if the purchase was made more than two years ago (that is what I remember from one of the lenders, you would have to contact them and find out specifics).

David H. · Answer

I'm interested in this as well.  I have some real estate that cash flows nicely, and I'm looking for a cash out refi.

Dan K. · Answer

Hey Steve - thanks for writing.  You're right - definitely some interest rules on purchasing real estate through a self directed IRA.  I feel comfortable with most of it, but just can't seem to find a lender that does non-recourse loans (refinances) using LTV, not LTC. If I could find one that does 70% LTV, I could use a hard money loan (or more accurately, the IRA could use a hard money loan) to purchase and rehab, and then refinance. If you have any ideas on this, let me know. Thanks again.