Thanks Ed. As long as the IRA is self directed I don’t think there is any difference in the way you use it to fund any deal, whether it is a Roth or not? I was thinking in the area of using the IRA or my Corp to fund a mortgage for the balance of the purchase price after the full 1031 funds are used for the down payment. That way either the IRA or the Corp only has control of the mortgage. I keep control of the new investment property as is normal under a 1031 transaction. I can do that and create the mortgage from the IRA or my Corp immediately and not have to wait to go thru the qualification process with a commercial mortgage. Does this sound reasonable?
Ready to close one replacement property. Cash proceeds which must be put into replacemet leave need for about 65%LTV funding. Can go commercial with “A” credit, but may not have time to complete. Could go Hard Money, but reluctant, since we do those ourselves through Corp and IRA. Don’t think IRS allows your own, or own corp or IRA funding on 1031s? Any suggestions for solution??
Posted by Ed Garcia on January 22, 2001 at 10:06:53:
Shaun,
You don’t tell us what kind of an IRA it is. I know that with a Roth IRA you can partner up with your IRA using the IRA to put up the down payment money. But no you can’t fund your own deal with your IRA. Either the IRA has to purchase it or you can partner up with your IRA, the IRA purchasing a portion and you the remainder portion. It doesn’t have to be 50/50. You might want to look into this. Also for information concerning 1031exchanges, go to http://www.1031X.com/