All Forum Posts by: Brett Synicky

Other retirement accounts. Also explore this list. https://www.biggerpockets.com/member-blogs/2810/50272-list-o...

 Additionally a seller carry would work as long as it’s non-recourse. Also a sub 2 would work even though technically the loan isn’t non-recourse since the ira owner didn’t guarantee the loan. 

There are a few ways to do this. 1: create a multi-member LLC, both IRA's are the members and the LLC holds all the assets. 2: each have their own LLC that invests into one asset as "co-investors" so to speak. Option 2 is much better typically because you won't be restricted to that one LLC having to do the same investments at the same time with the same original 50/50%. Option 1 is not ideal unless both spouses or other people are only going to do one investment together like a $10 million apartment building or something. In the thousands of checkbook IRA's we've set up we've done less than 10 multi-member LLC's.On the other hand if they qualify for a Solo 401k now the 401k is the investor and much easier to "combine" both spouses funds without the restrictions that come with the multi-member LLC.In either case, all expenses and income related to a combined investment must be shared pro-rata throughout the life of that investment.

@Corey G.

Good question.

Unfortunately, you and your immediate family are considered disqualified persons to your retirement plan. That means none of you can personally guarantee a loan used by the IRA or Solo 401(k)—any financing must be non-recourse.

Even if you plan to partner personally with your IRA, there are strict rules. It's not as simple as just going 50/50. The IRS prohibits self-dealing, so if either party (you or your IRA) enables the other to make the investment—meaning one couldn’t do it without the other—it would be considered a prohibited transaction.

One possible structure is to set up a multi-member LLC, where you are one member and your IRA is another. However, this setup comes with added complexity:

• The LLC must file a Form 1065 partnership return, regardless of whether any taxes are due.

• Because you (a disqualified person) are a partial owner alongside your IRA, there's a higher risk of engaging in a prohibited transaction, which could lead to your entire IRA becoming disqualified.

To stay on the safe side, it's generally best to keep all retirement account investments at arm's length—meaning your IRA should not co-invest with disqualified persons.

Consult a tax-advisor who's well versed in this area before proceeding. 

@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