Investing in Real Estate with your IRA

It is fairly straightforward to buy real estate with your IRA using a security firm if you buy with all cash. The question is this. How difficult is it to buy rental units with 25% down with your IRA money and the balance to be financed with a non-recourse loan (IRS rules) and what happens with the UBTI. My idea is to buy more units , at a lower price per unit, and then can hire a manager and use the IRA money for a down payment. I believe this would give me more positive cash flow but again what about those UBTI rules?

Comments(2)

  • edavis11th December, 2002

    What about this?




    Setup a LP. You as GP and sell a LP interest to your IRA for the Down payment. Buy a house and place it into your LP. Personally guarentee the loan at the bank. Boom.

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