Can your retirement account buy real estate? Startups? Alpaca farms?! Yes. And in this episode, Dana Udumulla from Madison Trust breaks down how self-directed IRAs actually work, what they can (and can’t) invest in, and why more commercial real estate investors should be using them to raise capital.
Whether you’re an accredited investor or a confused podcast co-host (cough Timmy), this conversation is packed with practical takeaways, tax strategies, and jaw-dropping scenarios (like turning $7K/year into $4.75M tax-free).
We also get into:
Don’t invest another dollar until you listen. Your future self will thank you.
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Resources Mentioned In This Episode
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⏰ Time Code ⏰
00:00:00 – Welcome to Commercially Speaking (and IRR is NOT a pirate noise)
00:00:42 – Meet Dana Kudumula: IRA Whisperer & Queen of Custodians
00:02:51 – Legal Disclaimer: No Financial Advice, Just Vibes
00:04:42 – What Even Is a Self-Directed IRA?
00:06:45 – Dana’s Origin Story: $200, Wall Street, and Finding Her Passion
00:08:11 – “You Can Invest in WHAT?!” – Real IRA Examples
00:10:05 – Roth vs Traditional IRAs Explained
00:14:33 – A $400K Tax-Free Growth Scenario
00:16:01 – Can You Use Bonus Depreciation in an IRA?
00:19:27 – Can a Fund Accept Self-Directed IRA Capital?
00:21:48 – What Happens to “Wasted” Depreciation?
00:24:42 – The Real Estate Pro Tax Strategy Breakdown
00:26:26 – Can You Roll Over Any Retirement Account?
00:29:15 – Setting Up a Self-Directed IRA (Step-by-Step)
00:32:54 – Who Legally Owns the Asset? It’s Not You!
00:33:46 – What Happens to Rental Income?
00:34:42 – The Checkbook Control Model
00:36:07 – Reminder: It’s Still a Retirement Account
00:37:13 – When Can You Take Distributions?
00:38:41 – How Much Can You Contribute? (And For Your Kids Too!)
00:41:00 – How $7K/Yr Becomes $4.75M – Compound Interest 101
00:44:22 – Roth vs Traditional: The Contribution Tradeoff
00:45:21 – Yes, Kids Can Have Self-Directed IRAs Too
00:46:45 – What Can’t You Do With a Self-Directed IRA?
00:48:09 – Creative Legal Loopholes (But Don’t Try These at Home)
00:50:22 – Lending to Family: Who’s Disqualified?
00:52:13 – Mistakes That Kill Your IRA (Seriously)
00:56:05 – The Biggest Scam Red Flags (And How to Vet Deals)
00:58:52 – Know Your Risk Profile: Don’t YOLO Retirement Funds
01:00:42 – Capital Raising From IRAs: A Hidden Superpower
01:03:28 – The $44 Trillion Opportunity
01:04:52 – Timmy’s Misconception: “Isn’t There a Menu of Investments?”
01:07:16 – Why Financial Advisors Don’t Talk About This
01:08:40 – Timmy & Dana Bond Over February Birthdays
01:09:10 – Most Common IRA Scams (And the Power of Pause)
01:12:02 – The Importance of Trusted Communities
01:13:30 – Final Takeaway: Research, Pause, and Diversify
📒Show Notes📒
Subscribe and listen to Commercially Speaking here:
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Bo is a CCIM Instructor and the owner and operator of Barron Commercial Group, servicing Western KY and its surrounding markets.
For all CRE inquiries, visit http://www.barroncommercial.com
Timmy is an actor, comedian, writer and host: @timmybarron https://youtu.be/ICoIAHSZvgA
