All Forum Posts by: Loren Whitney

Great idea, agreed! Be careful that you don't get yourself into an arrangement however. Reciprocating investment funds between two qualified plans to accomplish something that would otherwise by prohibited (self-dealing) can be construed as an arrangement in the event of an audit. Just make sure that all the investments are truely arms length is all I'm saying. I hope you find success with this Tara!

Welcome to BP DJ. If you listened to all 80+ podcasts in three weeks, I'm impressed!

Not sure if you're aware but you can actually use retirement funds to purchase a property without taking a withdrawal from the plan. There are lots of discussions about it here on the board but I'm happy to answer questions if they ever come up.

Again welcome!

You can purchase real estate for cash within the IRA but withdrawing funds from the IRA to purchase property would leave you with a taxable liability. Once you've purchased your IRA property, you can acquire a non-recourse refi to purchase a second property, etc. Make sense? Sounds like you may need to help us understand if this is for personal use or IRA investment purposes.

Peter, I agree with the others that consulting advice from a CFP is a good idea. From what you've said, it doesn't sound like withdrawing from the TSP now will put you any further ahead unless you have a great opportunity today. For general information, you may consult your TSP administrator. They probably have some great resources for you to check out.

Good luck and thanks for your service!

I was 27 when I bought my first property and 28 when I bought my second. I'll be 30 this year and I've shifted gears away from acquiring property and refocused on lending for the time being. Property values are creeping up and it doesn't feel like the right time to buy anymore. Timing is everything right?!

Welcome to BP @Clary Roberts 

As you begin the Solo(k) or SDIRA process, take some time to learn about the tax strategies behind in-kind distributions. This is the process of pulling some or all of the real assets being held in the plan. This may or may not apply to your strategy but it's definitely worth understanding before getting started. I've found that creating your exit strategy first is always the best way to ensure success.

@Daniel Guillermo 

Your logic is spot on about co-mingling funds. As long as the party you're lending to is not a disqualified person/entity, your particular scenario is allowable. You and your IRA funds can invest side-by-side as long as the investments stay independent of one another. You can make separate loans or a single loan. In the event you make a single loan, the lenders (you + iRA) just need to be expressed as separate parties and repaid individually.

Going forward, it's good to know that you have the option to partner with yourself. Had I known this earlier, I could have done a few additional deals myself. The important thing to remember is that all IRS rules apply when your retirement funds are at play. No personal benefit/no, no providing goods/services, etc.

I'm happy to answer additional questions or provide clarification where needed. Good luck!

Hey @Andy K 

As far as accounts go, you'll really be limited to a Roth IRA.

As far as investments go, there are really three primary ways to get involved in real estate. I actually just wrote a BiggerPockets blog on this exact idea about a month ago. Check it out here: 3 Ways to Invest in Real Estate with IRA/410k Funds.

Be sure to determine if UBIT will apply to your investments before getting started. If you're leveraging funds with your Roth IRA or investing into an operating business, you may want to do additional calculations to estimate your overall ROI projections.

Fees are typically the first thing that people look at when checking out different SDIRA providers. While that's certainly an important thing to pay attention to, look closely at the technology and infrastructure on which they operate. Some providers are much slower than others.

Feel free to ask additional questions. SDIRAs have been covered in depth on BP.

Good luck to you and your wife!

This is all great information @Dmitriy Fomichenko and @Doreen Chaisson 

I wrote a BiggerPockets blog post recently on UBIT titled, My 3 Most Common UBIT Questions and Answers. Hopefully this adds some additional information and strategy discussion to this thread. Good Luck!

@Wes Brumit 

Ken is right on the money. Instead of taking a lump distribution and paying taxes, they can roll the funds into a new IRA. The term 'self-directed IRA' is merely a descriptive term. They're really just starting an IRA with a provider that specializes in alternative assets like real estate, private lending, and private equity.

Feel free to ask additional questions. You can also check out my recent BiggerPockets blog titled, .

Best of Luck!