.• $60k purchase• $35k rehab• $95k total rehab loan payoff• 15% deposit = $14,250 "down payment"• $126k ARV (confirmed via refinance appraisal, borrower expected this to be higher)• 80% rate/term refinance ($100,800 loan) @ 6.75% [700-719 FICO]• Applied $4k of deposit to payoff for an updated payoff amount of $91k• Cover closing costs with 80% r/t refi + $2k back to borrower at closing (still considered a r/t refi if under $2k) + remaining $10,250 deposit reimbursed after payoff = $12,250 total back to borrower• $4k of his deposit + closing costs for rehab loan = his "cash" in the deal• $1,250 market rents• Total PITI = $765.62• DSCR = 1.6327 I do not see the hold costs.  

My fee is $10 per quarter that I have the money borrowed.  

Start by choosing a reputable custodian and clarifying your lane: lending from the IRA to unrelated borrowers vs owning assets inside the IRA.

You spend several hours of your time working a deal, structuring it and then the borrower goes around you with no consequences.. 

Plus, consider the risk.What would happen if your borrower doesn’t pay?

If it wasn't for how the program made the cost of borrowing much cheaper I'd avoid it, but your bottom line cash flow will be higher if you have patience with the program

You've got some strong cash flow in those properties and I love the fact that you're looking to leverage one of them to grow.From a tax perspective, a cash-out refinance doesn’t create a taxable event since you’re borrowing against equity, not selling.

It’s not cool, but it has low crime.Are you going to be able to borrow against two years worth of appreciation for your next purchase?

Find out how much you'd be qualified to borrow which will depend on your income and debt. 

You’ll fund the loan at origination, and the broker will usually keep the points and perhaps charge for servicing.Here, you get to vet the broker and the borrower as well as the property, so you know what you’re getting into.