Partner with IRA or Loan From?

2 Replies

I have a 50 unit deal that will run in the 10 cap range. I have a friend that's willing to either partner using his IRA or loan from. This would be in the 275k range. What's best method to arrange? Equity Partnership or Debt?

I would take him on as a lender if he's open to it and you can make it work. The tax situation will probably work out better for him, and you keep full control of the property.

@Blake Garcia

If you have a friend with a self-directed IRA, you can partner with him as equity partnership, or his IRA simply can be a lender to you. This is between you and your friend to decide and negotiate. What would be best for him? I don't know, depends on his experience, investment horizon, risk tolerance, etc.