All Forum Posts by: Brett Synicky

@Jason Braddock it is possible in some circumstances to partner with your IRA/401k though it's not the simplest thing to do and it increases the chance of a prohibited transaction. Better to use your retirement funds to make one or two investments instead of the down payment for several if your personal funds need to be involved. Or partner up your IRA with somebody that's not immediate family.

The two options are SDIRA or Solo 401k. As a Solo 401k does not trigger UDFI tax on leveraged real estate it's the better option if you qualify. More info about checkbook IRA and Solo 401k below. Also study checkbook control versus basic custodial accounts.

Solo 401k

https://www.biggerpockets.com/member-blogs/2810/21298-solo-401k-advantages

Sdira self directed ira

https://www.biggerpockets.com/member-blogs/2810/blog_posts/28450-real-estate-ira

@Jen Ray Why is it unfortunate taht it's Roth?! There are no taxes in the non-spousal inherited Roth IRA so long as it's met the 5 year rule

For anybody reading this here's some helpful information about prohibited transactions and disqualified parties. 

 ....

 There are different types of setups. Basic SDIRA where you have to go through the custodian for all transactions and checkbook IRA where you don't. Depending on your situation a Solo 401k may be the better option. Checkbook will cost more initially to set up but way less over time since no transaction/per asset fees like in the basic structure. If you're self employed at all and have no full time non-owner, non-spouse employees and the money you're rolling in is NOT Roth IRA funds then take a serious look at Solo 401k.

Will you be using leverage? Here’s a list of non-recourse lenders you can call through if you don’t already have one: https://www.biggerpockets.com/member-blogs/2810/50272-list-o...

Be sure to keep accurate bookkeeping records for the Solo 401k in case the IRS ever comes sniffing around. 

Godspeed on the purchase!