Partnering, Notes, and Using Non-Recourse Loans with Your IRA


Description

In this workshop, I showed you how to expand your IRA investing options by partnering with family members, structuring notes, and using non-recourse loans from banks that actually understand how self-directed IRAs work. We walked through step-by-step how to buy property in your IRA, why every document must say “read and approved,” and how rental income and expenses must flow through the IRA. I also shared examples of real deals — from condo partnerships to million-dollar buildings — showing the tax-free difference between doing it inside a Roth vs. outside. Finally, we covered how to lend money safely with your IRA, who you can (and can’t) lend to, and which banks still make non-recourse loans for IRAs.


Key Takeaways

  • You can open multiple accounts (Roth, Traditional, ESA, 401k) and use them for real estate deals.

  • Title property correctly: IRA (or trust for the benefit of IRA) must be the owner — not you personally.

  • Always sign purchase, sale, and lease documents with “read and approved” to protect yourself.

  • All income goes back into the IRA, and all expenses must be paid from the IRA.

  • Early withdrawals trigger a 10% penalty plus taxes (unless it’s a Roth and rules are met).

  • Local taxes (like rental income taxes) may still apply, even inside an IRA.

  • Partnerships are allowed — each account contributes its share and receives its share of rent/profit.

  • Roth IRAs don’t benefit from depreciation — but since it’s tax-free, you don’t need it.

  • Generational wealth: inherited Roths can stretch 100 years tax-free with required distributions.

  • Lending rules: You cannot lend to yourself, spouse, kids, parents, or your businesses — but you can lend to other investors, secured by real estate or assets.

  • Non-recourse loans are available (NASB, etc.) — banks lend based on the property, not your personal guarantee.


Action Steps / Exercises

  1. Account Strategy: List which accounts you already have (Roth, Traditional, ESA, etc.) and decide which one you’ll use next.

  2. Title Practice: Write out exactly how you’d title a deed for an IRA purchase (e.g., “XYZ Trust, for the benefit of John Smith’s Roth IRA”).

  3. Flow of Funds Drill: Draw a diagram showing how rental income flows into your IRA and expenses are paid out.

  4. Partnership Math: Practice splitting a $250,000 purchase between three accounts with different contribution percentages.

  5. Loan Exercise: Identify one potential borrower and outline terms for a secured IRA loan (interest rate, collateral, repayment).