Using IRA to Fund House Purchases
I am looking to start using my Roth IRA into purchasing some houses but down have $50,000,000. in there. Is there a good guidline to use to start off with different real estate investments with certain amounts?? I know because I am just starting out that I wouldn't be able to finance a whole house but what can I do with it??
For instance:
$1-$5k dollars invest in tax liens???
$5k- $20k invest in dirt cheap properties??
$20k-$50K wholesale, rehab???
$50k+ Larger wholesale, rehab
$200k+ Apartment rehab.
Any other good ideas for starting out investing with a Roth IRA??
What about loaning yourself some money that is in the IRA. Is this possible?? If it is then you could borrow the money out. Of course the interest that you could pay on the loan might governed.
I can check into this. I am starting with a pretty low amount so I don't know how it will work out. Ever since the stock market hasn't been doing well I am looking into doing other things with my retirement money, you know??
I think most of us are looking for other ways as well to get our money out of the market. Thanks for bringing up a great topic to talk about.
Working with money between you and your IRA is really tricky I would consult a great attorney before I started this. I wouldn't want the IRS getting involved.
You can withdraw from your IRA...for up to 60 days, during which you have to put the money back in...longer than that, you've ruined and disqualified your IRA.
Suggest you get and read IRS Publ. # 590, which sets out current rules for IRAs.
On p.40 it is stated: "The following are examples of prohibited transactions with a traditional IRA...Borrowing money from it..."
Now, as my Special Report on How to Use Your IRA to Buy RE, Notes, etc. states and discusses, if an IRA holder plans carefully he/she might make a loan to an LLC or Corporation which is basically controlled by him/herself and since this loan is to another legal "person" it isn't considered self dealing within rules of IRA.
Is there a way to use the IRA to purchase properties??