All Forum Posts by: Gil Hartman

Option 1 is out of the question, as anytime your IRA is involved, you need to get a Non-Recourse Loan. Your IRA can't be used as collateral. However, you could do option 2 (seller financing or seller carry-back). In this scenario, there is an actual note drawn up stating that it's a non-recourse loan. The IRA takes legal ownership of the property as soon as closing happens, and the seller holds the mortgage, which is essentially a lien. If you default on the mortgage, the seller has to foreclose on the property, the same way a bank would.

The IRA route is definitely a route to look into. Keep in mind, the funding doesn't need to come 100% from the IRA if you'd like utilize only a portion of your IRA. You can also use the IRA as a down-payment on a non-recourse loan. You have a lot of different options for IRA funds.

Most custodians don't set up the LLC for you. It's usually only administrators or facilitators that will set up the LLC for you.

@Thomas Dowell You should explore other options before you distribute the money and get hit with the penalty. You could transfer the money to a self-directed custodian and look into deeds of trust, tax liens, etc. Call some custodians and get some information. You could still park it in precious metal investments with the IRA until you decide what you can do with it.

@Daniel Hart You can always contact the IRA custodians directly to discuss your options, if you're having difficulty finding a CPA that will get creative. They can at least point you in the right direction.