Here’s the situation – I’m looking for info. on whether or not this can be done:
I have a single family home owned by an LLC of which I am the sole member (100%). I am looking to sell this home to an investor and have my self-directed IRA provide the mortgage for the buyer. Would this be considered an arms-length transaction? Not to complicate matters, but my LLC currently holds a mortgage on the property that simply represents the purchase price of the home by the buyer. My IRA would be paying off my LLC (that currently holds the mortgage) at the closing.
All comments greatly appreciated!