Completing a Deal on your IRA, Part One

Part One: What is MeansnnSay you have a deal that you want to sign right away (like tomorrow!) and you would like to do the deal on your IRA. Are you unsure of how to proceed? Do you do a trust and then your IRA will need an option from the trust? Have you found yourself in a situation you are unsure of? This is common. Most people are unsure of the answers to these questions. Let’s talk about what you can do to get this situation under control.nnFor the sake of tomorrow (as I said earlier-you want to sign right away!), you just need to go get a contract and then convert it into a deed. If you are getting a contract tomorrow then have your attorney do the closing in a couple-three days later. nnAnd if you get that done, as long as you are not the trustee yourself (and as long as you are not the beneficiary) you can always option it any time between getting this done and when you sell it with your IRA. Make sense? Seem complicated? nnWell let us make it a little more interesting. Are you still with me?nnLet’s say you are behind $2,500.00 in CDs, $1000.00 move in money and you want to pull that money out of your IRA. How would you do that? nnNumber one you should get the paperwork done. And if you are going to use your IRA money, your IRA should go ahead and send that money right to the closing and since you are taking this over subject to, your attorney should go ahead and do a little simple option for you. Your IRA should option the property for the loan balance plus the cash you are putting in to it. Still with me-here we go!nnAnd then your IRA can substantiate on the closing statement where the money is going. nnMake sense? It really isn’t that hard of an option. nnFrankly you will just need one check to come from your IRA to the attorney. nnThey will disburse it but they will need what they call an option fee.nnIn this case, $4,000.00 is what your IRA is paying to option the property. Because you need the $500.00 over the original, what you took subject to. This is not a hard option. Remember; keep your ducks in a row. Make sure you follow each step and you are on your way!n