Is there anybody out there currently using a self-directed IRA (or HSA) to invest in the purchase of mobile homes and or mobile home notes? We currently own several mobile home parks in multiple states and are interested in deploying retirement funds to invest in homes and/or notes, however, there is a self-dealing issue. I would be curious to know if anybody has figured out how to circumvent the self dealing issue or if anybody who also has a Self Directed IRA would be interested in working together on some deals within the IRA.
Funny you post this today, I was thinking of using SDIRA funds for that exact purpose the other day. I wonder about the self dealing- could my SDIRA buy and move a home into my park and sell to a new resident?
I suspect that would be a prohibited transaction - a transaction that, in some way, benefits you
Indeed this would be self-dealing, and not a good idea even if you “swap” with each other.
It’s a lot of hassle since your custodian would have to write all the checks, and there’s more than a few after purchase, move, setup, accessories like a deck/stairs and/or A/C, etc. Plus there’s lot rent owed to the park owner (assuming you’re not self-dealing), and generally your profit will be small and the risk is high.
Plus, how is your customer going to finance? Not through your IRA, or you’re going to have repo and rehab costs hanging over you.
It’s one thing to invest in a passive investment, it’s another thing to try to be a home dealer.
That is self-dealing. You cannot put the home on land that you or a related party (e.g. your LLC) owns.
I have a SDIRA , but for a SFH. You may be able to do it, if the IRAs purchased the items as a joint venture at the start. However, if not purchased together at the onset it may not be allowed.
So…here is what my custodian said I could do (and did 4 months ago). Bought an MHP with a partner in an LLC where I am the managing member. Formed a separate LLC to buy, sell, and rent used homes. My partner owns 51% of this LLC that my SDIRA loans capital to at 6%. I am told as long as I do not control the money in this LLC I am okay.