Some questions on mobile home deals thru self-directed IRA's - Posted by Debra G. (VA)

Real Estate Investing Real Estate Law
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Posted by IdahoRob on January 22, 2000 at 24:41:05:

Hi Debra

  1. Yes you would more than likly need a dealers licnese. At least in my state they still do. How ever keep checking the posts here. Has been some post stating about how to do some mobile buying and selling with out getting a dealers license. Remember You can buy a Mobile or 2 with out a dealers license its the selling that show you as a dealer. Some states will let you buy and sell 2 or more before you are a dealer check again with your state on that.

The only way you can use funds from the Ira is to buy it and sell it in the Ira’s name. Yes they will pay for all fees

The way I read the guidelines all expenses to get the mobile sold are covered by the IRA, such as, material to repair, lot rent till sold, and add cost, but if you paid your self a wage to do all of this— don’t think that would be covered—could be wrong but don’t think so,

Mixing personall funds and IRA funds is frowned on.
However You can do it in this manner. Buy or use your own funds to maintain the Mobile that means repossing also. With you funds creating very good paper records (receits and invoices paid out on) Then summit these to your IRA for a payback of the funds you spent. I am not giving legal advise here I am not an Atty.

So having said that if no funds were in you IRA to protect you Mobile guess you could use you personall funds to protect your investment. If it took you a couple of years to finally send in the records of the spent funds from your personnll account ------ mmm guess they would think you just a little slow hehhe and if you never sent them in because you lost them I don’t think they would even know. Kinda like the due on sale clause-- if you don’t tell it should not bite you. But is alway out there, and could.

Personally its best to play by all the goverment regs and if you used you own funds–and don’t show records it could come back to bite you. Who wants that hanging over your head all the time.

Thats my slant on it hope it helps.

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Some questions on mobile home deals thru self-directed IRA’s - Posted by Debra G. (VA)

Posted by Debra G. (VA) on January 21, 2000 at 11:44:29:

I understand that it is possible to buy and sell mobile homes through a self-directed IRA. My questions are:

  1. Do you still need a dealer’s license (which would normally be required in my state)? If so, does it need to be in your name, or your IRA’s name? And does the IRA pay for the fee?

  2. If you do any renovation work on the mobile home, can the IRA funds pay for it? Also lot rents, advertising, and other expenses?

  3. What do you do if all of your IRA money is currently invested, and unexpected expenses come up (such as those involved in an unusually prolonged repossession process, or in renovating a badly damaged repossessed home)? Can they be paid for out of your own pocket, to protect your IRA investment?

A lot of questions, I know. I’d appreciate any help from those who are already doing this. Thanks!