Retailing means buying a property, fixing it up, and selling it to a retail buyer that gets usually a FHA or consumer mortgage.
So if you’re going to buy fix and resell to a retail buyer with your IRA, and use IRA funds to buy and to repair,
- Make sure that you have enough money to do the job. You don’t want to run out of money. And you can’t borrow money easily.
- Think about having a partner when you’re doing a fixing flip for extra money (think JV agreement with someone)
- Make sure your custodian allows you to have a checkbook IRA LLC.
