Find This Episode - and All Resources - here: https://SelfDirected.org/podcasts/investor-talk/big-lie-ira-not-limited-using-non-recourse-loans-episode-149   Interested in borrowing money in your IRA to do bigger deals?  Have you been told you’ve got to use a Non-Recourse loan?  THINK AGAIN… It’s just not true!  In fact… I’ll tell you why even some “Non-Recourse” loans don’t even qualify for use in an IRA.  I’m Bryan Ellis.  I’ll tell you the brutal details RIGHT NOW in Episode 149 of Self Directed Investor Talk. ---- Hello, SDI Nation!  Welcome to the podcast of record for SAVVY self-directed investors like you! There’s been a whirlwind of activity here at SDI Headquarters.  We’re doing a lot of great deals with our clients and we’ve got a couple of really, really solid multifamily properties that, frankly, are truly solid deals – one of them a 5-unit building in the $250,000 price range and a 12-unit building around $800K.  Both fully renovated with highly reliable cash flows and double digit cap rates… a beautiful, beautiful thing.  Plus, you might recall a couple of weeks ago when I had 19 GREAT fully turnkey single-family properties available for purchase, and all 19 of them were snapped up within about a week?  Well, one of those is available again due to an unfortunate situation for the former buyer… and this is a good one!  Get this – the pro forma suggests you can get a solid 11.5% cash-on-cash return AFTER factoring out property taxes, insurance, management fees and even maintenance expenses!  And this property will only cost you $49,900 to get into it… that’s not the down payment, that’s the entire price!  So some really, really awesome opportunities available right now, for a very brief time. If that sort of thing gets your attention – as well it should – then let me know – and quick!  Just go over to SDIRadio.com/consultation and set up a time to talk with me. My friends… there’s a rumor going around.  This one is pervasive.  It goes something like this: If your IRA borrows money, it must use a “non-recourse” loan. You ever heard that one?  It’s almost true… but very, very wrong. For those of you who may not know, a “non-recourse” loan is one in which the lender’s only recourse if the borrower defaults is to foreclose the property.  The lender isn’t allowed to sue the borrower or take any action other than to foreclose the property.  These loans aren’t generally available at local banks or big lenders.  They’re the domain of specialty lenders who cater That’s the reason that the “non-recourse” fable is so prominent among self-directed IRA custodians and account holders.  You’re not allowed to use your IRA as collateral for a loan or other extensions of credit.  To do so is a prohibited transaction, and would totally blow up the account. But nowhere in the tax code – that I am aware of – is there any indication that the only loans that can be utilized by an IRA are non-recourse loans.  What is clear is that neither the IRA itself nor the owner of the IRA is allowed to accept liability for such loans. But that leaves… oh, let me see… nearly EVERYBODY ELSE IN THE ENTIRE WORLD!  Here’s what I mean: What if you could get some unrelated third party to acquire financing for a deal in your place?  Maybe a close friend or a business colleague would serve as something of a “credit partner” and allow you to essentially “rent” their credit from them.  You’d do something like pay the third party a fee, and in exchange, they’d get a loan for your deal that is more favorable or more legally compatible with your IRA than anything you could get yourself. In that case, the loan is absolutely NOT a “non-recourse” loan.  The lender could take the property – which is pledged as collateral – if your IRA defaulted, but that lender could also pursue judgments or other recourse.  But that recourse would be against the CREDIT PARTNER, and not against your IRA. So there you have it:  Use of a full-recourse loan that does not violate the re