Nicole Misiti asked 2 years ago
Background
Our self-directed IRA bought a lot. It is split 50/50 by me and my partner. I am 54 and he is 63.
We want to build two triplexes on the lot. We plan to build and hold. Due to escalation in materials and labor, our IRA’s do not have enough money to build the building. The self-directed company that we have our self-directed IRA in said that we can take a percentage distribution of the property and then partner with our IRA to build. (We are aware there are tax implications.) We could, for example, distribute out 80% of the property so that our IRA would own 20% and we would own 80% . The ownership percentages would be responsible for their percentage of the cost to build.
Questions
Do you agree with their guidance?
Are there any hidden dangers we need to think through?
Are there any other scenarios we should consider?
Do you let us know if this gets answered on your podcast?