BRRR Concern Question

[Lakshay G.]

Hello,

I live in Maryland (Near Baltimore). I may have been misunderstood but I was told at one of the REIA meetings by a person who works for a Self directed IRA company that when money is borrowed from a hard money lender to purchase and repair the house, it'll be hard or almost impossible for me to get it refinanced for a conventional loan (for buy and hold) for rental purposes. If this is true, I won't be able to do @Brandon Turner's famour BRRRR strategy.

Please help. Thank you. 

[Bernard Reisz]

@Lakshay G. Are you doing the RE within a self-directed IRA? Loans to an IRA must not be personally guaranteed by the IRA-owner, as doing so is a prohibited transaction. Loans to an IRA must be non-recourse to the IRA owner - aka "nonrecourse loan" - which is available from certain specialty lenders.