I am new in my REI and starting with wholesaling. I have not gotten my first deal yet.
I currently have 9 offers out from my June marketing campaign and 2 that have responded w/motivation.
I have also recently put 15K in a Self Directed IRA...
I don't have enough in there to buy/hold anything right now. But, I was thinking that I need to put it to work in some type of very short term loan (90-120 days or less)..to make some type of return.
Is that a viable option?
If so, what does that look like.... how should that be structured?
Should I just wait and put money in as I close wholesale deals to fatten up the pot for later.
I guess I'm confused on what I can do now w/this account to generate a return.?.?.?
Any suggestions would be appreciated...
While I can't provide you with any specific investment recommendation, you have virtually limitless investment options with SD IRA. You can invest in flips directly or finance the deal to someone else, you can do gap funding or invest in trust deeds, you can invest in a business or give lend to someone personally... As long as your IRA does not engage in a transaction with 'Disqualified Person' you have many options, the only challenge is that your available funds for investing are limited so this may limit you from participating in some profitable ventures, but keep looking!
You DO NOT want to do wholesaling inside your IRA. That's an active business and the income will be subject to UBIT - unrelated business income tax.
Jon Holdman, Flying Phoenix LLC
Dmitriy & Jon~
Thank you for the information...
I definitely did not know about the UBIT and will take great care to make sure that I am in compliance.
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