Can My STRATA IRA Use Leverage to Finance a Real Estate Purchase?

Yes, an IRA-owned property may be debt-financed, but only with a non-recourse note. The property must be the only collateral for the loan, and all payments must be made from your IRA.

You cannot guarantee the loan personally or make payments on the loan out of pocket. In addition, debt-financed property in an IRA may be subject to unrelated business taxable income (UBTI). For more information, please consult your tax advisor.