Private Lender Loans
We use private lender loans in our business.
It’s important to understand self-directed IRAs to get private lender money.
Many people have hundreds of thousands of dollars in their retirement.
It’s important to understand what a custodian is, which is a company that’s approved by the IRS to do real estate investment loans.
Do a search here on this website as far as self-directed IRAs.
It’s a simple process:
1 the IRA holder contacts the custodian and says they want to do a private loan with Real Estate Security.
2 the custodian will send the paperwork to transfer the funds to the custodians account
3 the private lender paperwork will be created between the real estate investor and the custodian
4 when it’s time for closing, the funds will be transferred to the title company.
5 payments will be made to the private lenders IRA not to the private lender themselves.
6 the private lender can check on the internet with the custodians website as to when the payments are made on their loan.
The types of IRAs that can be used are many.
- Traditional IRA: A common account for self-directed investors
- Roth IRA: A common account for self-directed investors
- SEP IRA (Simplified Employee Pension): Designed for self-employed individuals or small businesses with fewer than 25 employees
- SIMPLE IRA (Savings Incentive Matching Plan for Employees): An account that can be self-directed
- Solo 401(k): An account that can be self-directed
- Health Savings Account (HSA): An account that can be self-directed
- Coverdell Education Savings Account (CESA): An account that can be self-directed
