We’ve had the privilege of doing a few deals this year funded by Individual Retirement Accounts (IRA). To be more specific, these deals were funded by self directed IRA’s (SDIRA).
The process was actually pretty simple and it was a great way for our clients to fund private money / hard money deals from money that was underperforming in stocks and bonds. So, here is a quick step by step on how the process works:
- Find a deal you want to fund (we can help with that).
- Transfer the necessary funds to a company than can handle an SDIRA that can hold real estate, notes, etc.
- Prepare necessary documentation showing your SDIRA as the lender.
- Borrower signs documents and your SDIRA funds the transaction.
All of the SDIRA funded deals we did this year are earning the investor over 12% annually. Are your retirement funds working this hard for you?