Last Updated on February 9, 2021
IRA Financial Group, the leading provider of Self-Directed IRA LLC and Solo 401(k) Plan solutions, announces a specially designed Self-Directed IRA LLC solution for hard money lenders looking to generate tax-deferred or tax-free returns. Because most financial institutions continue to require solid credit scores and spend weeks reviewing financial statements, tax returns and business plans, there is a growing need for quick financing for many individuals, small business and investors, especially real estate developers and builders for their real estate projects. As a result, IRA Financial Group has partnered with the IRA Financial Trust Company to design a special Checkbook Control Self-Directed IRA LLC program designed specifically for hard money lenders.
As a result of the very strong demand from hard money lenders to have more control over the loan process, we have developed a special Self-Directed IRA LLC solution specifically tailored for the hard money lender investor. Because of the very limited amount of financing available to most individuals and small businesses, many hard money lenders are eager to use their IRA or 401(k) funds to make loans and generate tax-deferred income or gains.
A Self-Directed IRA LLC offers one the ability to use his or her retirement funds to make almost any type of investment on their own without requiring the consent of any custodian or person in a tax-efficient manner. The IRS only describes the type of investments that are prohibited, which are very few. The main advantage of using a Self-Directed IRA LLC to make hard money loans is that the loan can be made by simply writing a check. In addition, all income and gains associated with the Self-Directed IRA hard money loan would grow tax-deferred.
With IRA Financial Group’s Self-Directed IRA hard money lending solution, traditional IRA or Roth IRA funds can be used to make secured or unsecured private loans to small business owners or home builders.
The Self-Directed IRA for hard money investors is an IRS approved structure that allows one to use their retirement funds to make hard money loans, either secured or unsecured, to any non-disqualified third-party by simply writing a check. The Self-Directed IRA LLC involves the establishment of a limited liability company (“LLC”) that is owned by the IRA (care of the IRA custodian) and managed by the IRA holder or any third-party. As manager of the IRA LLC, the IRA owner will have control over the IRA assets to make traditional as well as non-traditional investments, such as hard money loans by simply writing a check.