SD IRA, Real Estate, Business

[Jim Williams]

Just curious about self-directed IRA's and wondering if anyone is familiar with this idea.

I set up a 401k with my self-directed IRA funds, which purchase stock in a newly-formed C-Corporation, The Corp than buys, say, 10 homes. This can be considered a business(from what i understand), thus allowing you to take an income, if there is one after all expenses, including a separate prop mgr.

Yes you would pay taxes as ordinary income, but the appreciation, once you sell, is what remains in the IRA. I would also be using non-recourse financing, so i wonder if the income i get would help offset unrelated debt financed income(UDFI).

It's a little confusing, but i am trying to use my self-directed IRA to create income for me outside the IRA, as well as keep profits in the IRA.

I would love to hear from anyone who has experience or knowledge in this. Or a recommendation of someone who does know.

Thanks

Jim Williams