View Full Version: Yes!

Yes!

michiganmoney
2007-12-21 12:36

As always double check with your trustee. As long as your IRA can afford the payments and you can structure a non recourse contract with the seller, ie. no personal liability/no problem. The property itself is the recourse and if the IRA can't pay the seller gets the property back by mutual consent. If the seller has to sue, he will have to sue the IRA and not you personally.
Some folks take this a step further and structure the contract with the seller that allows the IRA to rent or lease option the property to a third party. This builds cash flow into the deal that can help both the IRA and the seller!!!
Always, always, always get your trustees approval and bounce the whole deal off of them prior to proceeding. Seek competent legal advice when in doubt.
Live
Marc

cjmazur
2007-12-21 14:24

is the cost and fees of setting up and running a SDIRA worth it.

I have only found 1 trustee that I thought was reasonable.

michiganmoney
2007-12-21 15:27

Reasonable as opposed to paying taxes on the deal? You get to roll of the profit into the next profitable deal!!! Try the Entrust Group and tell them Marc sent you.

cjmazur
2007-12-21 16:53

can't one have a tax-deferred (unless a ROTH IRA, then tax free) rollover w/ a 1031 exchange, and no headaches of SDIRA such as:

UBIT
Is this a disqualified transaction
How do I get a loan or is there 0 leverage
What Trustee (fees, hassle dealing with them)
If cash-flow property will there always be enough cash in the IRA for its cash-flow needs.


The aspect of the SDIRA that I do like is that I'm putting it directly in the investment I want. Not the one a mutual fund manager wants.

I potentially for a much more agressive rate of return

michiganmoney
2007-12-22 13:42

And you can COMPOUND your returns tax FREE!!!!!!!

NewKidInTown3
2007-12-22 22:49

Quote:

On 2007-12-21 12:36, michiganmoney wrote:
If the seller has to sue, he will have to sue the IRA and not you personally.
If the seller sues the IRA, the seller in actual practice sues IRA custodian. Your IRA agreement probably has a hold harmless clause which says that you agree to indemnify the custodian in case of a lawsuit.

michiganmoney
2007-12-23 03:15

and your point is? Don't make any promises you can't keep in your IRA period.......

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