Using debt leverage means an investor can purchase a property worth two or three times what they could have purchased out of pocket–or it can enable the investor to purchase multiple rental properties for their self-directed IRA.
If after a couple of years an IRA-owned property gains value, and the owner has paid off a percentage of the debt, refinancing the property can allow the investor to reduce the percentage of profits subject to Unrelated Business Income Tax.
See how it works…