Posted by J.P. on February 16, 2002 at 05:58:13:
Jerry,
Too bad no one has answered your question! I would like to know the answer. If it is possible, then I could beat the returns of any mutual fund manager!
JP
Self-Directed IRA for Real Estate Investments - Posted by Jerry G.
Posted by Jerry G. on January 31, 2002 at 05:50:02:
I have a nice sum of money from my former company pension plan and 401k that I must take and roll into an IRA. My question is whether there is a way for me to have a self-directed IRA that would be the financing vehicle for my Real Estate Investments? I am a newbie but am excited about the possibility of a ready source of cash and would like to set up something of this nature for my Real Estate Investments.
Reading the IRS regs have made me wonder if some of my ideas are legal and/or how to go about them. There seems to be some contradictions (and confusion!) on what are “prohibited transactions” and exemptions to the prohibitions.
I would like to know any particulars for the types of transactions I could do. For example, I would like to loan money through my IRA to myself for real estate investments that would be repaid with interest to my IRA. The IRS seems on the one hand to prohibit it but seems to exempt it on the other as long as certain criteria are met (fair interest, secured loan, available to all participants,etc.) I know it was common in my company for people to take out loans against their 401k and repay themselves with interest. Is this available to me with a self-directed IRA even though the plan is only for one person (me) because of my rollover? Would I have to secure the loan with the property I am purchasing?
Also, could the IRA purchase and hold/flip properties directly while I adminster them (collect rents to send to the IRA, make repairs and charge the IRA, etc.)? The IRS again confuses things by implying I cannot actively participate in an asset of the IRA but seemingly allowing an exemption and then possibly exempting the exemption! It seems foolish that I would have to pay a Property Management firm for services I could provide to the IRA at a fraction of the cost. Can I manage properties purchased by the IRA and can I also collect reasonable fees for managing?
Any pointers would be appreciated! 
Re: Self-Directed IRA for Real Estate Investments - Posted by J.P. Vaughan
Posted by J.P. Vaughan on February 16, 2002 at 07:36:40:
You can buy real estate, mobile homes and notes with a self-directed IRA. For more info and expert advice, contact either:
Hugh Bromma at: Self-Directed IRA Blog | Investment and Retirement News from Entrust
OR
Dick Desich at: http://www.midoh.com/privatebank.htm