Posted by Tony-VA on March 15, 2000 at 12:23:40:
I disagree Bud. I never implied that we can sell anything to Mom’s IRA. Nor can mom’s IRA loan us any money to do deals. What I described was partnering with mom’s IRA in the purchase of an investment that is owned by an unreletated 3rd party.
Example. Mom’s IRA kicks in $1000 and I kick in $1000 to buy a mobile home for $2000. We sell the mobile home and split the monthly payments.
I have not sold anything to mom’s IRA. Mom’s IRA did not loan money to me to make this purchase. Mom’s IRA simply bought a 50% ownership in a mobile home from a private, unrelated seller.
Where do you see this as violating an arms length transaction? What is your experience with these deals? Have you tried calling Entrust and ask them if this is possible. I believe that you will find that these companies are very willing to answer questions. The info I have recieved from these companies is that you can partner with your own IRA so long as you take title as such.
The partnering with your IRA as I described has been approved by several sources. I don’t see why mom’s IRA would be considered any different than one’s personal IRA when it comes to arms length transactions.
I am not providing legal advise and that is why I suggest that people considering such a transaction go straight to these companies to get verification. Many who post about this topic are merely repeating what they have heard or believe but the info is not confirmed by any source of true authority. I may well be wrong despite my confirming this scenario with true authorities. Perhaps I have been mistaken in my interpetation of their advice. Again that is why I recommend that all of this be confirmed by anyone considering such a transaction. If your IRA company cannot answer such questions, perhaps it is time to find a different company. These companies make their living doing this niche investing. They had better know what is arms length and what is not. If they are not willing to share this info with me, they are of little use.
Just my 2 cents,