Yes, we have many clients that do this type of investing. You can use borrowed money if your Roth IRA is the borrower (not you personally) and your Roth is also the owner of the property purchased. When an IRA borrows money to purchase real estate it most likely will be subject to taxation of a percentage of the borrowed amount –again this would be done through IRS form 990T and called Unrelated Debt Financed Income (UDFI), subject to taxation at trust rates. Many clients structure deals in different ways to minimize taxes, as an example instead of borrowing money in the above example– sell part of the deal and UDFI may not apply.

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