Fix and flip loans for self-directed IRA accounts finance a short-term acquisition and renovation inside a retirement plan — non-recourse hard money, third-party contractors only, and every dollar of equity from the IRA. The product is the same collateral-first bridge Jaken Finance Group quotes at 8.99%–13.5% interest-only; what changes is vesting, funding source, and exit rules.
In one sentence: an IRA fix and flip is a non-recourse hard money loan where the self-directed IRA owns the asset, pays third parties to renovate, and exits by selling or paying off the note — not by refinancing into a rental mortgage inside the account.
Structure and custodian basics: hard money loans for self-directed IRA. This page covers the flip job itself.
Apply: pre-qualify · submit a flip · (833) 264-7776.
How an IRA flip differs from a personal LLC flip
| Step | Personal LLC flip | Self-directed IRA flip |
|---|---|---|
| Offer / earnest | LLC checking | Custodian wires from IRA |
| Guaranty | Managing member PG | None — non-recourse only |
| Rehab labor | You or your GC | Third-party GC only — no sweat equity |
| Draw inspections | Lender + you | Lender + custodian approval path |
| Exit | Sell or DSCR refi | Sell or pay off — no IRA DSCR |
| Proceeds | LLC / personal | Back to the IRA |
If your exit plan is “renovate and hold as a rental,” stop here and read investment property loans for LLC plus DSCR loans. Jaken Finance Group does not close DSCR inside an IRA.
The IRA flip sequence
- Custodian confirms real estate is allowed and names the vesting (direct FBO or IRA-owned LLC).
- IRA funds earnest money — custodian wires after you direct the purchase.
- Non-recourse hard money funds acquisition per the term sheet.
- GC contract is in the IRA’s name — the contractor invoices the custodian (or IRA LLC).
- Draws follow lender inspection milestones; custodian releases IRA cash.
- List and sell — proceeds return to the IRA; note is paid off at closing.
Budget extra calendar time for custodian sign-offs on draws and sale disbursements. The published 7–10 business day acquisition close assumes a complete file — not a custodian learning real estate on your first deal.
Draw schedule and custodian approvals
Hard money rehab draws follow the same inspection milestones as a personal LLC flip — with an extra step:
| Milestone | LLC flip | IRA flip |
|---|---|---|
| Lender inspection signs off | Yes | Yes |
| Custodian approves expense release | N/A | Yes — every draw |
| Funds wired to GC | From LLC account | From IRA via custodian or IRA LLC |
| Personal reimbursement | Sometimes sloppy | Prohibited |
Submit draw requests with invoices in the GC’s name, lien waivers where your state expects them, and photos that match the scope line item. Custodians that batch requests weekly will blow your contractor’s cash flow — ask about turnaround before you hire the GC.
National draw mechanics: how to get a fix and flip loan · rehab loans for investment property.
Listing and selling through the IRA
The IRA (or IRA-owned LLC) is the seller on the listing agreement — not you personally. Commission, transfer taxes, and payoff wire all flow through the custodian at closing:
- Listing agent contracts with the IRA as owner; you may not receive a commission as a disqualified person unless structured by counsel
- Offers are accepted by the custodian or IRA LLC manager per the operating agreement
- Closing statement shows net proceeds to the custodian FBO your IRA after note payoff
- No partial cash-out to you at the table — every dollar stays in the account
If a buyer wants a rent-back or seller concession, the custodian must approve. Treat the sale like any institutional owner, because that is what the IRS expects.
Property management and contractors
You cannot self-manage or perform rehab work — the IRA hires third parties:
- General contractor — licensed where the municipality requires it; contract in IRA name
- Property manager — if you bridge-hold briefly before sale, PM fees are paid from the IRA
- Handyman “help” from you or family — prohibited sweat equity even for one afternoon
Disqualified persons include your spouse, parents, children, and their spouses. The GC cannot be your brother-in-law’s company if he is a disqualified person — get SDIRA counsel to review vendor relationships on your first deal.
Insurance during the IRA flip
Vacant-dwelling and builder’s-risk policies must match IRA vesting. Common failure modes:
- Policy names you personally while title is custodian FBO IRA
- Builder’s risk starts after demo day one — bind before first swing
- Liability limits too low for the lender’s mortgagee requirement
Send the insurance binder to underwriting with the same vesting that will appear on the deed. Fix and flip insurance request if you need a broker referral.
Timeline: realistic IRA flip calendar
| Week | Task |
|---|---|
| −3 to −2 | Custodian OK, GC bid, pre-qual with address and ARV |
| −1 | IRA wires earnest; hard money term sheet signed |
| 0 | Close acquisition in IRA name |
| 1–12 | Draws + inspections + custodian releases |
| 13–20 | List, accept offer, custodian approves sale |
| 21 | Close sale; note paid from IRA proceeds |
Add two to four weeks if the custodian is new to real estate or if your first draw packet is incomplete. Model carry in the fix and flip calculator at the long end of the range.
Documentation checklist
| Document | Notes |
|---|---|
| Custodian account statement | Proves IRA liquidity for equity + reserves |
| Purchase contract | Vesting matches custodian FBO or IRA LLC |
| Scope of work + GC bid | Line-item budget; licensed contractor where required |
| ARV comps | Three sold comparables at the finish level you will build |
| Non-recourse term sheet | Hard money — no personal guaranty |
| Insurance | Builder’s risk / vacant dwelling in IRA or LLC name |
| Prohibited-transaction acknowledgment | Confirm no personal use or self-dealing |
Requirements mirror a standard fix and flip loan with an extra custodian layer.
Worked example: IRA flip in Indianapolis
| Line | Amount |
|---|---|
| Purchase | $142,000 |
| Rehab (GC-paid from IRA) | $38,000 |
| Total cost | $180,000 |
| ARV | $245,000 |
| IRA cash (down + rehab + 6 mo IO) | $78,000 |
| Non-recourse loan (~57% LTC) | $102,000 |
| Rate | 11.49% IO |
| Hold | 6 months |
| Sale (net) | $238,000 |
The IRA pays the GC from custodian-directed wires, sells through a listing agent, and distributes net proceeds back into the account after note payoff. The account holder never touches the property or the tools.
Dealer activity and UBIT
The IRS treats property acquired and sold quickly as potential dealer activity inside the IRA, which can trigger UBIT on gains — separate from UDFI on any leveraged portion. Flipping inside an IRA is legal when structured correctly, but the tax math is not the same as flipping in an LLC on your personal return.
Work with a qualified self-directed retirement tax professional before you proceed. This page is not tax advice.
Common IRA flip mistakes
- Personal money for a draw shortfall — prohibited transaction; plan full IRA funding upfront
- You or a disqualified person on the job site — hire a GC; do not “help”
- Assuming DSCR refi at the end — Jaken Finance Group does not originate IRA DSCR; exit is sale
- Custodian surprise on day three — confirm real estate and wire timing before the offer
- Under-funded IRA — model rehab + 10% contingency + IO carry in the fix and flip calculator
First-time flip mechanics (non-IRA): fix and flip loans for beginners.
When not to flip inside an IRA
- You want to self-manage or perform any rehab work personally
- The IRA cannot fund the full equity stack without personal supplementation
- Your exit requires a 30-year rental hold in the retirement account
- The custodian cannot turn around expense payments inside your contract timeline
For those cases, use an LLC hard money flip or buy the rental in an LLC on DSCR.
Send the custodian packet with the scope
Ready to bid? Pre-qualify with address, ARV, scope, custodian name, and IRA statement — or submit a flip.
Further reading: hard money loans for self-directed IRA · fix and flip loan rates · what is a hard money loan.
Have the scope and custodian contact ready? Pre-qualify · Submit a flip file · Fix and flip calculator · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner-occupied investment properties. This page is not tax, legal, or investment advice.