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Lend Money In Self Directed IRA
Do you want to “Be The Bank” and earn a steady return on your investment dollars AND have that investment secured by a real assets? Private money lending can generate high and predictable returns while securing your principal with a piece of property making it a very attractive investment alternative.

A self-directed IRA or 401k can lend money, just like a bank or private individual. With a self-directed note in your retirement plan you choose the borrower, principal amount, interest rate, the length of the term, payment frequency and amount, as well as if you would like the note to be secured or unsecured. Security documents include mortgage, deed of trust, quit claim deeds, vehicle titles, gold, or stock certificates endorsed to, or in the IRA’s name. Notes with security agreements, or only references to items of security will typically be held as unsecured. While unsecured loans are simpler to execute they are also a riskier type of loan.

Private Lending “Cliff Notes”

1. Money goes to business, individual, or other investor.

2. Agreement in place for money to be repaid.

3. Equity or property may be used (optional but recommended) to secure the promise to repay.

4. Remember your IRA cannot lend money to:
° Certain Family Members
· You and Your Spouse
· Your Children and Their Spouses
· Your Parents and Grandparents
· Your Grandchildren and Their Spouses
° Certain Business Partners

5. Lend to real estate investors, small businesses, discount note purchasers, non-profit organizations, etc.