Investing In Self Directed Mortgage IRAs
Has anyone utilized the new provisions allowing a self directed IRAs to invest in Real Estate or Real estate mortgages? It looks like a great format.
Is anyone aware of any "central clearinghouse' type location where individuals looking to use their IRAs in this type of investing for above average returns can be put in touch with those of us looking for funding? 
The Self Direct IRA works well for purchasing notes. Owning real estate in them has a few twists that you need to discuss with a expert. The provision for self direction is not new it has been there for years.
All you need to do is open an account with a 3rd party trustee like Mid-ohio securities or Entrust Admin. & purchase notes thru a broker or find them yourself & fund the purchase with the IRA account. The Trustee will act as your intermediary & will walk you thru the process to stay within the ERISA federal regulations.
Good Luck
So,IF I wanted to buy a note or some real estate how could I finance it? I contacted midoh securities and they said I would have to have the money already... Too bad I couldn't take a loan for a rental property and have the monthly income go to the self directed IRA.
Any ideas ?
thanks
Kevin
Your IRA can't get financing on your behalf, an IRA is a retirement account meant for money to be deposited into and accumulate. It is not a LOC, it is a pension account. You direct the way it should be spent, to buy a house, notes, etc. If you don't have the money and need to finance you will not be able to use a self directed retirement account without properly funding it first.
What you can do is buy a property, take a profit, and if you will not need the money until you retire, pay taxes on it and stick the money into an IRA. When you have enough to purchase a house, roll it into a self directed and go on about your business.
Talk to your CPA. Good luck.[ Edited by jhgraves on Date 09/26/2003 ]