Building renovation partnership

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Reference no: EM131009511

Joe Bacillus owns Bacillus's Italian Restaurant. A friend of Joe's who owns a sports bar come to Joe and wants to form a partnership with Joe to buy an old building, renovate it, and then move both the restaurant and the sports bar into it along with other tenants. Joe would like to make this investment. He needs approximately $200,000 for his share to buy-in of the partnership that will purchase, renovate, and manage the building. Because of other recent large expenses, however, Joe finds himself short of cash at the present time. His only large liquid asset is his self-directed IRA, which currently owns $225,000 in stock and bonds. Joe proposes that he direct the IRA to sell the securities and to use the proceeds to invest in the building renovation partnership.

Reference no: EM131009511

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