Posted by JT - IN on May 13, 2001 at 22:33:29:
I knew as soon as I posted that, that I was not entirely sure on that issue of leveraging against a property owned by IRA. I thought that someone would straighten me out, and you did. Thanks Bud. It makes sense.
JT - IN
Money–Loans–Mortgage–Financing ?? - Posted by Donald C. Hagan
Posted by Donald C. Hagan on May 13, 2001 at 10:54:28:
I can find real estate deals all over the place. The major hold up is for someone to finance the deal. I have propose everything I have learned thus far in the course. The lending institutions look at me as if I was crazy. I have offered a 2nd note or equity loan on my present home with plenty of equity. (No) I have offered my IRA as a backer. (No) Heck, what am I doing wrong–the lenders are running not walking away from me. I have A+ credit and there is no problem there. I need a lender to say yes (One Time) and I am off to the races… I have the No Money Down Course but I can’t get lenders to see eye to eye with me. I have offered to put it all on my credit card with a $10,000. limit and I still get (No). I just don’t do this Credit Card thing all the time --but I took a shot. The answer was (No)… Tell me of some lenders that y’all have worked with, would be a blessing. I’m tired of hearing NO…HELP
Re: Money–Loans–Mortgage–Financing ?? - Posted by Lor
Posted by Lor on May 13, 2001 at 17:16:10:
The IRS allows you to take all the money out of your IRA one time each year. As long as you return the money within 60 days you will not be penalized. I did this several years ago. Actually bid on a foreclosure on the steps of the county courthouse. Took possession, and flipped immediately to another invester who had the time to do rehab and resold it after me!
Did you say you have an IRA? - Posted by jT - IN
Posted by jT - IN on May 13, 2001 at 13:25:22:
The reason that you are unable to use you IRA is that you have offered it in the wrong form; it cannot be collateralized, as it is uncollectable as security.
Do you have enough in IRA to use as 2nd mtg, or even a 1st, on one of these deals? Mid-OH securities, and other IRA custodians will allow you to self-direct your IRA proceeds, into a RE mtg, or even a purchase. You would need to rollover IRA to Mid-OH, then direct them to advance x amount of dollars as 2nd mtg on property that you are purchasing. Cannot live in this property, though.
You would be approving yuor own deal, this way.
Just the way that I view things…
JT - IN
Re: Money–Loans–Mortgage–Financing ?? - Posted by Ed Garcia
Posted by Ed Garcia on May 13, 2001 at 12:55:18:
Don,
You don’t tell us where you’re from? I’ve got to laugh when I read your post, because if you are right in your assessment of your self, and I’m sure you are, you shouldn’t be having the problems you’re having.
Don, today I’m going to make life a little easier for you. Rather than discuss the lenders with out having all of the facts, and only your assessment. I’m going to do something that will be of value to you. I’m going to personally help and advise you.
I think that with just one phone call, I can get you headed in the right direction. I also am a lender in 42 states, and if you’re in one of them, I’ll get you the money. It’s just a matter of structuring the deal that is amicable to you, and fits the lending criteria of a lender. Many times we take a deal to a lender without knowing their lending criteria and the deal does not match up with their lending policies.
My number is (909) 944-0199. You spend the dime, I’ll spend the time.
Call me tomorrow…
Ed Garcia
Re: Money–Loans–Mortgage–Financing ?? - Posted by Lou Vukas
Posted by Lou Vukas on May 13, 2001 at 11:04:32:
If your finding good deals I would go with a hard money lender. Try www.statewidellc.com, their one of the best.
Don’t take money from IRA, use custodian - Posted by JT - IN
Posted by JT - IN on May 13, 2001 at 21:54:03:
I would not suggest this approach, as one of the perils of RE investing, by nature, is that it is illiquid investment. I understand the rules about the use of IRA funds for 60 days, etc., but what if you plan the prompt return of funds, but due to circumstances beyond your control, you are unable to return funds within 60 days. There is more than a penalty, all monies not retruned within the 60 days would be taxable as ordianry income in the year withdrawn, plus a 10% (additional) excise tax, for early withdrawl, assuming you are under 59 1/2 yo. You could easily lose half, or more, of the value of your IRA doing this. I view that as a BIG RISK!
A much safer way to use your IRA funds to accomplish the same thing is to rollover your IRA / Pension funds to a custodian that will allow you to self direct your IRA fund into private mortgages or have the IRA as owner of fee-simple real estate. Now the IRA owned property could not have a mortgage on it, so if you have enough IRA funds to make cash purchase, great! Otherwise, have IRA be your lender. All completely safe and legitimate with IRS; except cannot be your primary residence.
I know that Mid-OH Securities allows this type of IRA. You can find them as an advertiser on this site.
Just the way that I view things…
JT - IN
Re: Did you say you have an IRA? - Posted by Donald Hagan
Posted by Donald Hagan on July 04, 2001 at 06:44:08:
Thank You JT-IN,
I have the IRA’s thru Edward Jones and First Fedelity. I have enough to make a good down payment.
Re: Money–Loans–Mortgage–Financing ?? - Posted by Donald Hagan
Posted by Donald Hagan on July 04, 2001 at 06:38:05:
Thank You for the advice. After talking with you I really seen the need for conversation. Once again Thank You, “dch”
Clarification on mortgaged property in IRA - Posted by Bud Branstetter
Posted by Bud Branstetter on May 13, 2001 at 22:17:04:
You are allowed to have mortgaged property in an IRA. Owner financing, subject to or non-recourse is allowed. The prorata share of the profits are subject to unrelated business income tax paid by you personally.