Comprehensive Webinar: Buying Real Estate with Your IRA and a Non-Recourse Loan Mat Sorensen from Mathew Sorensen on Vimeo.
Your IRA can buy real estate using its cash and a loan/mortgage to acquire the property. Whenever you leverage your IRA with debt, however, you must be aware of two things. First, the loan your IRA obtains must be a non-recourse loan. Additionally, your IRA may be subject to a tax known as unrelated business taxable income (UBTI). This comprehensive webinar explains the requirements for non-recourse loans, as well as the various non-recourse loan options. It provides detailed information on how UDFI tax may be applied and how it is calculated. Below are the slides from the presentation as well as the recorded video presentation of the webinar. Please note that page 27 in the PDF slides below has been updated from the webinar, as I made a calculation error regarding the debt owed. The final tax numbers were still correct, though. Thanks to Roger St.Pierre, Sr. VP at First Western Federal Savings Bank, for co-presenting the topic with me.
