Self-Directed IRA


#1

Has anyone purchased MH’s for rental or re-sale retirement investment purposes with funds from a Self-Directed IRA? I had plans to purchase MH’s with IRA funds and move them to my property. A Rep from an Investment company said a MH located on my own property is not allowed by Self-directed IRA guidelines. Any ideas welcome.

Thanks,

DK


#2

DK,

My father and I have a park and were very excited when we learned about self-directed IRA’s. Like you, we thought with our IRA funds we could buy homes and put them in our park.

After doing our research we quickly found out that there are “qualified” and “disqualified” persons with whom you can do transactions with. Here is a list of those that are considered disqualified persons:

*Lineal ascendants and descendants and their spouses (Grandparents, parents, and children)

         Note: Siblings ARE qualified. (However, in my case since my father is part owner my brother is not qualified)
  • Your spouse

  • A fiduciary of the plan- this includes yourself and any advisors, such as the custodian or third-party administrator.

*An employer of any of the participants in a plan.

*A person providing services to the plan.

*Corporations, partnerships, trusts, or estates in which you own at least 50 percent of the total voting stock, directly or indirectly.

Since we can’t invest with our own IRA’s in our own park, another park owner and I have discussed investing in each others’ park. Since his daughter is not allowed to invest in mh’s in his park we talked about her investing in mh’s in ours- which lead me to think about my entire family (brother, mother, father, aunt) using their self-directed IRA’s to invest in mh’s in his park. It’s a win-win! The investor has a great investment paying little or no taxes and the park owner has more homes to fill the park.

Hope this helps.

Jamie Richardson


#3

This is a great idea if quid pro quo (Sam invests with Pam, and Pam invests with Sam) transactions are allowable.

One of the things we do to protect our investors is ensure their interest will be bought out when the park is sold.

Daphne


#4

Have you thought of lending the money from your IRA to a business partner or associate? He/She then purchases the homes, moves them into your park and pays into your IRA off of a prommissory note.

Might work, might not, just thought I’d jump in…

Beck


#5

Thanks for all the input.