Yes, you can leverage the investment property you have or are considering to purchase utilizing retirement accounts. Roth, IRA, Self-directed Solo-K, and other types of funds held in retirement accounts.
These little know loans have a couple traits in common. They are commercial loans, non-recourse financing. Few companies offer them due to the traditional small loan amounts. Most banks will not write commercial loans less than $ 500,000 in size. Resulting in a very little know market. We do have access to these loans and can generally fund in all 50 States and for condo’s and up. Some markets are shut out due to instability. California recently emerged from said designation and now enjoys financing up to 55 % leverage in most of the State.
I hear from many people the fear due to taxes being imposed upon the IRA account. True, there may be UBIT tax. I challenge all parties to check with qualified tax preparers and ask what the actual dollar amount would be paid on a sample investment. You will be amazed at the small size. Small price for leverage I find is the ultimate comment from members of the public. I will in the future post an article from a great tax preparer detailing this little known tax. Stay tuned.