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Self Directed Investing Rules

Prohibited Transactions

Your IRA may not purchase property that you or any disqualified person currently owns. Inversely, your IRA may not sell or rent a property it owns to you or any disqualified person.  The property must be for investment purposes only, you may not personally benefit from the property. You may not use it as a vacation home, you may not let your son or daughter live there while they are in college, and you may not lease it to your business.  Expenses including any repairs made to the property must be paid for by the IRA. Sweat equity is also not allowed in any property owned by your IRA. Repairs must be done by a non-disqualified person.  Examples of disqualified people include you, your children, your spouse, or your parents. However, you can decide if, when, how, and by whom the work can be done.

Financing the Purchase

The property can be purchased with cash from your plan. This is the easiest way to purchase property with your IRA. The IRA owns 100% of the property.

You may not lend to any disqualified person or company.

Disqualified persons include yourself, your parents, grandparents, children, grandchildren, spouse or any of their IRAs as well as any company that they own a significant portion of. (See: Prohibited Transactions)

The notes must be real economic transactions

Your IRA must benefit from this note, which means the interest rate must be realistic. A common question is, “My brother is not a disqualified person, can I lend him money to buy a new car at 0% interest?” No, because your IRA is not benefiting from this transaction.

Thank you for your interest in working with You Can Be the Bank. YCBTB does not represent that the offerings are suitable or appropriate for all potential investors or clients. The fact that YCBTB has made the data on this offering available to you constitutes neither a recommendation that you enter into a particular transaction nor a representation that any offering described on this offering or on our website is suitable or appropriate for you. Some of the offerings described on our website or in this offering involve risks, and you should not enter into any transactions unless you have fully understood all such risks and have independently determined that such transactions are appropriate for you. This offering, provided only for current and prospective clients of YCBTB , does not intend to provide investment, tax or legal advice and you are responsible to seek advice from your own business advisor, attorney, tax advisor, or accountant. We look forward to the opportunity to work with you.