Can You Borrow Money from Self-directed IRAs for Gap Loans?

September 6, 2014

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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About the author

Beau Eckstein

Beau Eckstein is an experienced real estate investor and loan broker with over 20 years of experience in the industry.

He has sold real estate as a licensed agent, originated conventional mortgages, and arranged hundreds of millions of dollars’ worth of real estate transactions, from commercial financing to construction loans and bridge deals.

Currently, Beau is the Managing Director of PACE Equity, where he arranges financing for commercial development and renovation funding nationwide. Beau also originates HUD, SBA, and bridge loans, as well as other types of creative financing for many different situations.

Over the past 20 years in real estate, Beau has created a platform of financial partners to get all kinds of projects funded.

Recently, Beau re-located from the San Francisco Bay Area to Las Vegas, Nevada. He still does considerable business in Northern California, but, over the years, his reach and network has expanded nationwide.

Beau Eckstein can conduct business from anywhere and serve people all over the US.

Beau Eckstein

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