1.  Can I buy real estate with a partner using my IRA?

You may have any partners, including yourself and any family members, their IRAs, eligible 401(k) s or other qualified plans, when you first purchase any property using your IRA.  Once the property is acquired using your IRA, you may not sell it to yourself or family members consisting of ascendants and descendants or spouses thereof.

2.  What do I do if I don't have enough money to buy real estate in my IRA?

You may partner with yourself or others; you make allowable contributions; you may obtain debt financing through private sources or financial institutions on a non-recourse basis; You may arrange a seller carry back loan; you may sell other assets in your IRA to raise cash to make the purchase; you may transfer funds from other IRAs or rollover funds from qualified plans, such as 401(k), 403(b) or government 457 plans you may have had at employers where you no longer work; If you have a profit sharing of 401(k)plan where you currently work, you may be able to make in-service withdrawals and roll those to the IRA within 60 days.

3.  Where can I get a loan for real estate purchases using my IRA?

Normally private lenders, seller carry backs, and mortgage companies may lend to your IRA on a non-recourse basis.  Sometimes banks and credit unions may make non-recourse portfolio loans to IRAs.

4.  Can I buy property with my kids' IRA?

Your children's' IRA may purchase property, and may do so as partners with your IRA, or any other IRA as noted previously.

5.  How do I take a loan from your IRA?

You may not borrow funds personally from your IRA under any circumstances.  This is a prohibited transaction.  You may lend to any person other than disqualified persons or companies.

6.  Where can I go to learn about using my funds for real estate investing?

You may receive major education from our web site at http://www.entrustswfl.com/.  You also can call us at any time at 239-333-1031.

7.  I have a 401(k).  I can I invest that in real estate?

Your 401(k) plan may, at your direction, invest in real estate if the investment provisions of the plan permit it.  If the employer contributions to your plan have been made, and the plan permits self-directed investments, there will be rules to the amount you may invest from that portion you are vested in. 

You may also have an Individual (k), which limit participants to owners only, plus spouses and partners, you may decide on the investments to be completely self-directed by you.

9.  How do I self direct my 401(k)?

Whether you have an Individual (k) or a 401(k) at another employer, which permits self-direction, you direct your account funds to be investment exactly as you choose.  This includes the purchase of real estate and any other investment you decide on (except certain collectibles).  The funds are then used to purchase the asset, and the asset will be vested in the name of your plan's name for the benefit of your account.

Dave Owens, CPA, is managing member of Entrust SWFL.