Seller finance through self-directed IRA

[Jon K.]

My tenants are interested in buying their rental from me but need time to improve/establish their credit as well as save up a down payment. This rental is titled in my name and I have a mortgage on it. Put aside whether or not this would make sense financially as I still have a lot of numbers to crunch on that end but is it possible to finance this sale for my tenants through an IRA that I have and if so what's the high level process in doing so?

[Brian Eastman]

@John-David Herlihy

The IRS rules state there may be no direct or indirect transactions or benefit between a plan and a disqualified party. By using the IRA to facilitate the sale of a property he owns personally, the IRA would be providing a benefit to Jon.