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HOW DO I PAY FOR PROPERTIES?
Cash – it is perfectly permissible for your self directed IRA to pay cash for investment properties.
Mortgages – You can get a mortgage on a property purchased using your self directed IRA funds for down payment so long as there is no personal guarantee by you. This is known as a non-recourse loan (so named because the lender has no recourse to you personally to repay the mortgage). Your local bank or credit union is probably not familiar with non-recourse loans and may not be willing to lend under those conditions – no matter how good your relationship. There are also possible tax ramifications when you leverage your IRA funds using a non-recourse mortgage known as the UDFI. Please see our home page for a list of non-recourse lenders.
Join with Partners - Your self directed IRA can invest with others to purchase an investment property.
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