I am looking for the best options for putting together a deal where I am going into partnership with another guy. He is using cash and I am wanting to use my SDIRA. We will be needing a loan from the bank. Bank wants both partners to be guarantors. Will this scenario work?
- My SDIRA owns 49%, I personally own 1% and partner owns 50%. For my 1%, I would be guarantor and my SDIRA would essentially be non-recourse.
Would this work? I see that it is valid to be in partnership with your self. I just know there are limitations on the guarantee status of SDIRA loans.
David, welcome to BiggerPockets and congratulations on your first post! You can't provide personal guarantee for the loan to your IRA, IRS does not allow that. You are considered "disqualified person" to your IRA and should not be part of the transaction. Why are you considering making yourself personally 1% partner?