Co-Investing Through Self-Directed IRA
Has anyone ever co-invested using a self-directed IRA? Also, do the credit line programs administered by FRC and others allow levered co-invest with the equity contribution being funded by a self-directed IRA if the line is recourse only to the equity contribution? I appreciate any insights here.
I have done this. I use Equity Trust Company. Have a self directed Roth and self directed IRA through them. I have invested in 1) special purpose vehicles managed by my firm, 2) flagship funds at my firm, and 3) external opportunities outside my firm’s purview.
Not the most streamlined onboarding process and it can be a bit cumbersome to get things set up for a new fund or entity you’re investing in, but once it’s set up, subsequent capital calls are pretty streamlined.
Thank you for the helpful response. Have you made any leveraged co-investments funded with your IRAs in your firm’s vehicles / funds?
Equity Trust poster here. Negative - I have not made leveraged co-investments through the SD Roth or IRA. Sorry not more helpful….
No worries, thank you for responding
Mason's Numbers, did you end up investing in your firm's levered coinvest fund through a self-directed Roth IRA? I'm considering this, but it seems like the leverage might have adverse tax implications (UBIT / UDFI).
I did not; are you getting leverage in your SD Roth IRA? It seemed like it wasn't when I was initially considering it, but maybe it's feasible if it's non-recourse.
Qui id ut et quis consequatur mollitia voluptatum. Eum dolorem ipsam illum et ut sit. Et animi nihil sunt tempore est cum voluptatem. Deserunt beatae ut architecto voluptatem dolorem ea. Nam perspiciatis et nulla tempore aliquam cum rerum. Consequatur modi eos nobis pariatur. Ducimus est nostrum tempora molestiae qui.
Quo quia nam ea laboriosam. Necessitatibus nam neque rem aut facere. Et alias sapiente incidunt officia.
Hic est eum aliquid ut voluptates. Id aut vero ratione et veritatis est ea. Voluptas ipsa magni perferendis distinctio quaerat et. Et et et aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...