IRA loans are a great way to leverage your own retirement funds and make them stretch farther in acquiring investment real estate inside of your self directed retirement plan. Whether your plan is a Self Directed IRA, Solo 401K, IRA LLC, or other qualified retirement plan, you can use as little as 40% of the purchase price in your own retirement funds and combine that with a non recourse IRA loan from First Western Federal Savings Bank. The rental income from the property pays back the loan and covers all operating costs of the property.
Or you may already own investment property within your Plan free and clear and now want to leverage that equity to provide the horsepower to buy another investment property. You can do a cash-out refinance to free-up funds for another purchase. Or even leverage the property you own in-lieu of a downpayment to buy the next property.
There are many options to use an IRA loan (AKA Non Recourse Loan) to expand your real estate portfolio within your qualified retirement plan. Just use the leverage wisely and keep some funds liquid in your plan for that unexpected event or repair you will ultimately have to make. It’s just good business.