Mixing SDIRAs, Conventional & Financing on Portfolio of Property

[Daniel Dietz]

Hello all, 

We are working on a potential deal that could involve up to about 16 units with a value of about 1.25M. There are 3-4 of us interested in partnering on this deal. 3 of us, myself, my brother and father already have a 3 way LLC set up using our SDIRAs. The forth interested party is our uncle. All of us would be able to fund from SDIRAs, Solo401Ks or Cash for our equity stake.

We will be seeking professional advice also as to how to set things up, but thought I would get some input here also. 

My first gut thought is that it would make the most sense to do each property either 'all cash' for the down payment, or else 'all retirement plan funds' for the down payment. 

As we each look at our own goals, tax situation, goals etc.... and it ends up that one of us wants to do more cash vs one of the others wanting to use more retirement funds, would there be some combinations of those that would make more sense than others. 

There is a good chance that we will be able to use seller financing for this deal, and that non-recourse would be an option also if we wanted to use the retirement funds. A couple of possible scenarios, if allowed, might be;

1. Two brothers, father and uncle all use SDIRA funds invested into 4 way LLC. LLC takes out non recourse loan. Seems to work from what I know.
2. One brother and father use SDIRA funds, other brother and uncle use cash funds into 4 way LLC (or no LLC if there is an advantage to that). Can the LLC then do non recourse loan or not since disqualified parties are involved in the LLC? I would think this one is 'no go'.
3. If just the two brothers (who are not disqualified to each-other) and the uncle are involved, and one of them wants to use SDIRA and the others want to use cash, what would the borrowing possibilities be? Since none of these parties are disqualified to  each other, would non recourse lending be allowed using THESE properties as the collateral? 

I hope this makes sense. Hopefully some of the highly knowledgeable pros can chime in on this one :-)

Thanks, Dan Dietz