The IRS requires a non-recourse loan for all real estate purchases that use leverage within a self-directed IRA. Non-recourse debt is typically limited to a 50-60 percent loan-to-value ratios.
Real Estate in an IRA LLC
LLC owners, known as members, have “limited liability” meaning they receive liability protection, which is similar to a corporation. An IRA holder has complete signing authority over his or her retirement funds.
Partnering Your IRA
A self-directed IRA is considered a separate entity that can conduct business with others. A self-directed IRA can partner with anyone at the time of initial purchase.