Private Lending IRA
- Originate new loans or acquire fractional shares of existing loans with your self-directed IRA.
- Secure the transaction with collateral as you see fit (you can also leave it unsecured).
- Qualify your borrowers to determine interest rates and loan durations.
Self-Directed IRA Loans
Your account is the “lender”, but you pull the strings. You decide who can borrow your tax-advantaged retirement dollars, how much interest they’ll pay, and for how long the loan will last. You can even secure the note and collect payments on behalf of your account, though any payments you personally accept must be forwarded to our Trust Company for deposit.
The IRS prohibits “sweetheart” loans in an IRA. Debt investments must represent genuine economic transactions (no 0% interest rates) and your borrowers must make at least one payment per year.
Three Simple Steps to a Private Lending IRA
- Open Your Account – Complete our online application. Your new account will be fully opened within two business days.
- Fund Your Account – Make a contribution, transfer money from a similar account (Traditional IRA to Traditional IRA), or initiate a rollover from a dissimilar account with the same tax status (401(k) to Traditional IRA).
- Make Your Investment – Once you and your borrower agree to terms, please entitle any loan and/or security documentation in the name of your account. For example, “VHFS as custodian FBO John Doe Roth IRA #123XXXX”. Upon receipt of correct paperwork, we will issue the specified funds to your borrower.
Real Estate Self Directed IRA
Residential Real Estate, Commercial Real Estate, Agriculture, Raw Land, Mineral Rights
Ownership & Returns
Title Ownership (with or without debt)
- A self-directed retirement plan can purchase real estate outright with cash from the account. An account may also secure a loan to increase its buying power. Earnings would generated by rent and/or proceeds from sale.
Partial Ownership on Title
- An account may partner as tenants-in-common with other investors: person, company, another IRA, HSA, etc. Earnings from rent and/or proceeds from sale are fractional, corresponding to the account’s ownership percentage.
- Your IRA can own a private equity percentage in an entity (LLC, land trust, LP, etc.) that invests in real estate. Account earnings would be dividends from that entity.
Step-By-Step Guide to Acquire Real Estate in an IRA
Step 1: Open Your Account – Your new account will be fully opened within two business days.
Step 2: Fund Your Account – Make a contribution, transfer money from a similar account (Traditional IRA to Traditional IRA), or initiate a rollover from a dissimilar account with the same tax status (401(k) to Traditional IRA).
Step 3: Make Your Investment – Choose the real estate approach that suits your expertise, find real estate, and close the deal on behalf of your self-directed IRA!
For more information, please Call: (800) 798-8466