Can you Wholesale to someone with a self directed IRA?

Question

So I know that some people are choosing to utilize self directed IRA's to purchase investment property.

Has anyone successfully sold a wholesale property to a buyer using the funds from their IRA? Is it possible?

Chris Clothier · Answer

Yes Jimmy -

You can use your self directed IRA to wholesale properties. Your custodian simply directs the money into the purchase of the property and then the funds are replaced at time of closing on the back end.

We have a ton of clients who use their SDIRA's for short term loans which is not the same as wholesaling, the transaction is just as quick.

best of luck

Chris

Chris Martin · Answer

Last question first... Yes. See the Form I plan to use for doing it, specifically under "When to use this form" where it says "Wholesaling".

Regarding the other question... not yet. what I'm thinking of is not quite wholesaling... but a wholesale-type deal with 6-12 months financing via my SDIRA.

J Scott · Answer

I've purchased properties from funds in my IRA, so I'm quite certain it's possible...

Depending on the specific retirement vehicle the buyer is using, it may take some extra effort and/or time to get to closing, but it can be done...

Can you Wholesale to someone with a self directed IRA?

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