Funding with Self directed IRAs / 401Ks

[Nick Causa]

I’ve been hearing about self directed IRAs (Roth/Traditional) and 401ks being used to fund deals frequently. Why is this a good stretegy other than having access to the $? Aren’t you losing out on the real estate tax benefits using retirement accounts? Thoughts?

[Dmitriy Fomichenko]

@Nick Causa

You are considered to be "disqualified person" to your IRA. The rules prohibit any transaction between IRA and such person, can't use IRA to fund your personal deal.