Using Equity Trust IRA funds for part of a deal

[Andy V.]

I have a buy and hold rental property under contract. I also have a real estate IRA with Equity Trust. I'd like to use some of those funds for the earnest money as well as some of the repairs. I have a private lender for the balance. I will get a mortgage in two months when the repairs are complete and we have a tenant. The mortgage is from a portfolio lender who will finance 70% of the ARV, which is more than enough to pay back my earnest money and repairs from the IRA as well as the private lender, plus interest. Do I have to keep this property in the name of my IRA forever or can I merely take out a mortgage in the name of my LLC (when the house is fixed up with a tenant in it) and pay back the funds borrowed from the IRA? I've been told that if I keep the house that I can't get a mortgage in any other name than the IRA (on my behalf) since that would be comingling funds. Is that accurate?

[Brian Eastman]

@Andy V.

Either the IRA buys the property or you do. There is no in-between and no option to shift from one to the other.

The IRA can purchase the property and obtain a non-recourse mortgage. No personal guarantee from you is allowed.

If you are purchasing the property in your own name, keep your IRA entirely removed from the transaction.