Many people probably don’t know that your IRA can be a good source for real estate investments. For m0st, they will only consider their accounts as part of their retirement years. The good news is that you can put your self-directed IRAs to work for you and build an even bigger retirement nest egg today. If you are considering real estate investments, then here are some facts about Self-Directed IRAs for you to consider.
What is a Self-Directed IRA?
One of the first questions you may have is what is a Self-Directed IRA anyway? In a nutshell, Self-directed IRAs allow you options to choose how you invest your money such as in real estate or businesses.
“Self-directed” basically means that you have complete control over your own IRA and how the monies are invested. With your self-directed IRA, you have the ability to buy a wide variety of assets. For the first time investor, this can be a wonderful opportunity to increase your finances and secure a more financially stable future.
One benefit is that you can invest your funds wherever you want. You can use your own personal knowledge and skills and combine them with the resources to grow your retirement account. This gives you the potential to build wealth and secure your financial future more effectively than you can with a traditional retirement plans.
Another benefit is that you are in charge of how you invest and where your funds are invested. This gives you the freedom of making your own choices and again, potentially increasing your retirement account unlike other traditional retirement plans. Self-directed individual retirement accounts provide a great deal of freedom, flexibility, and choice of investments.
Your IRA Borrowing Money
Your IRAs can borrow funds but you can’t use the funds as collateral for loans for personal use. However, financing a property in an IRA for the benefit of your Self-Directed IRA is not prohibited. As an investor, you may have a hard time finding traditional institutions that will lend to an IRA plan for these types of loans. Your best chances will be speaking with a hard money lender, like SFR Ventures, Inc. Hard money lenders are more likely to lend to IRAs.
Obtaining a Loan
Here are some things to keep in mind when you decide to obtain a loan for your IRA plan:
- The loan to value ratio (LTV) is important to your hard money lender. The lower the LTV, the more attractive the opportunity may be to your lender.
- The loan from your IRA is for the benefit of the IRA and not a personal loan to you as an individual. Your IRA may purchase a property subject to an existing debt.
For more information on Self-Directed IRA loans, check out SFR Ventures, Inc. If you feel that a Self-Directed IRA loan is right for you or if you have any additional questions, call Beau Eckstein at 925-852-8261 or visit SFR Ventures, Inc. on the internet at http://reiloanpro.com.
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