Can You Borrow Money from Self-directed IRAs for Gap Loans?
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"In this video, hard money lender Beau Eckstein answered “Yes” to the question of whether a real estate investor can use money from a self-directed IRA to fund a real estate deal.

There are trillions of dollars in retirement funds in the United States and just a very small percentage of those funds are self-directed.

Now, Beau cautions investors inclined to use their self-directed IRA funds as a gap funding source – you probably don’t want to do that because with a gap loan, you are generally on a 2nd lien and don’t have a lot of protection if the real estate deal goes bad.

You really want to use retirement funds in a safe investment, where you can hedge your bets. Gap funding is NOT the best placement for your IRA funds.

But it certainly can be–and is being–done."

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