Opening a self directed IRA to invest in real estate

[William LaPorte]

Hi, looking into investing in real estate using private money. My mother in law has been turned on by the idea of rolling her 401k into a self directed Ira to fund my investments. I've heard this might be illegal? Does anyone have any experience with this? Or can anyone refer me to someone who could help me out? Thanks

[Cory Damon]

Originally posted by @David Beard:

You ARE a disqualified party vis-à-vis your Parent-in-Law's qualified retirement account, and she cannot invest with you or any entity that you own 10% of. Sucks, I know, sorry.

For the record, the following are NOT disqualified parties:

Brothers, sisters, aunts, uncles, cousins, step-brothers, step-sisters, and friends

 Hey David, I know this is really old but I thought I'd ask anyway.  This is only the case going one way correct?  What I mean is that I could invest in my parent-in-law via my SDIRA, they just wouldn't be able to invest in me with their SDIRA.  Do I understand that correctly?