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URL:  https://boards.fool.com/yes-but-there-are-a-number-of-important-25169339.aspx

Subject:  Re: Self directed IRA question Date:  2/13/2007  5:58 PM
Author:  jrr7 Number:  92112 of 132652

Yes, but there are a number of important restrictions:

- you have to find a custodian willing to do it; these guys typicall charge high fees
- if you take out a loan, you have to find a lender willing to do a non-recourse loan (that is, if the IRA defaults on the loan, the bank can't come after the IRA's other assets beyond the property)
- you cannot negotiate to buy the property; you cannot live in or manage the property, and neither can a relative -- that would be a "related party transaction". The IRA owner needs to stay at arms' length from the property by directing the custodian to take certain actions (or hire someone to take those actions).

And one benefit:
- you can take the property from the IRA as a distribution
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