Whether you’ve never raised private money before or do it regularly, you can structure that money as a loan (debt) or by giving the investor ownership in your deal (equity). Today, we are going to talk about when to use debt versus equity when you’re raising private money to fund your real estate deal. So, where to start?

Self-Directed IRAs

Let’s talk about my favorite investment vehicle, self-directed individual retirement accounts (SDIRA). A self-directed IRA is a special type of retirement account, one that used to be a 401k belonging to an employee of a company. Once that employee leaves the company, it can be rolled into an IRA account and then moved to a company that allows them to operate it as a self-directed account. This way, they can place the money into assets of their choosing. They can invest their…