SDIRA

3 Replies

If i own a property through a SDIRA and a non recourse loan, and say after a couple years i want to sell it, what are some of the restrictions guidelines for this? I know all the equity and profit must go back to the IRA, just wanted to know if there are any restrictions on who i can sell it to besides disqualified parties?

Thanks 

Only the disqualified parties I would think.  There's a Self-Directed Investor Podcast that has some interesting info from time to time.  @Dmitriy Fomichenko might be a good resource also.

I think Aaron is right. A couple items for reference: Short book from people at North American Savings Banks in Missouri (one of the few IRA lenders. I have only found two) "Leverage Your IRA: Maximize Your Profits with Real Estate". You might also want to search Bill Bronchik's site www.legalwiz.com. He set up my IRA LLC.

I think you have the right ideas about this. Basically, all earnings from selling the property have to go back to the IRA, just like any other income or expense from this investment. You cannot sell to any disqualified person.

On another note, you properly are familiar with the rule that you (or other disqualified persons) cannot personally benefit from the transaction. For example, you can't act as the agent and receive a commission from the sale of the property. 

I would recommend reading more on prohibited transactions. Also, when in doubt, consult a qualified professional with experience in real estate and self directed IRA.

Dmitriy Fomichenko, Broker
(949) 228-9393

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