Using self directed IRAs to fund Real Estate purchases

[Daniel Showman]

I have been hearing a lot about self directed IRAs and how they have been used to fund long term real estate holdings. have any of you had any experience with working with a self directed IRA? If so could you shed a little light on the process and your experiences? Thanks always gratefull for your input and shared experiences.

[Dan Deppen]

I started using a SDIRA last year to buy mortgage notes and its pretty easy. One thing to keep in mind is that if you are rolling money into it from an existing IRA or 401k, you don't need to roll the entire balance in at once. You can roll over the amount you need for the real estate investment you are going to make, and then roll over more later when you are ready to do something else. That way you won't have excess cash just sitting in the SDIRA, because in an SDIRA you won't typically be able to put that in regular mutual funds.