BRRRR method using IRA partnered with personal funds
Hello,
I have been working on a investment plan and would like some guidance. I want to purchase a property with cash from a IRA and put the IRA and myself as percentage owner on title. I spoke with the self directed IRA custodian and they said this is acceptable.
Example: Buy a $110ARV for $80K cash with IRA funds. Use $10K personal funds (Line of credit) to rehab. Rent the property out for one year.
The part I would like more help understanding is the "refinance" portion. Would a lender refinance the property to me, so I can get the cash back to the IRA? Or would they do a completely new loan? Or is this not normal practice?
The property would be in Dallas, TX.
Any help is appreciated.
Thanks in advance!
-Arun Chandra