Can You Borrow Money from Self-directed IRAs for Gap Loans?
Yes you can.
Self-directed IRAs are becoming huge tools for real estate investors
There’s essentially six trillion dollars in retirement funds and about two to three percent of those retirement funds are being tapped into
You’re seeing a big push for these self-directed funds or these retirement accounts to be rolled into self-directed
Tips:
Work with a lot of different what I call ‘financial friends’
When buying a project we structure deals where their lenders help us on some of our projects, so it works out very well.
There’s a lot of resources out there to get your feet wet and learn how the process of these self-directed funds work, but it would be highly recommend you get involved
Make sure you consult the right people before you get involved and just don’t—know what you’re getting into essentially
Comments (1)
Hi Beau,
There is no doubt that self-directed IRAs are gaining popularity; however, one must understand the plan features offered by the plan provider upfront. Chances are that you lose investment flexibility as you go up the ladder, with a majority of big institutions limiting investment options. Further, these transactions could be a bit tricky considering the clause of not working with disqualified person in any form whatsoever.
Dmitriy Fomichenko, over 9 years ago