New trend of hard money lenders using self-directed IRA LLC to generate strong tax-deferred returns from real estate developers and builders.
IRA Financial Group, the leading provider of “checkbook control” self-directed IRA LLC and solo 401(k) plan solutions, announces the strong demand from hard money lenders for the self-directed IRA LLC solution. Due to the strong real estate market and continued lack of available financing, there has been string demand from real estate developers and builders for real estate related loans. 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 real estate developers and builders for their real estate projects. As a result, over the last year or so, a growing number of nontraditional lenders have stepped into the void. Many of these nontraditional lenders have decided to take advantage of the lucrative private lending financing market, and have started using their retirement funds, either via a self-directed IRA or solo 401(k) Plan to make private loans and generate tax-deferred returns especially in the real estate industry. “Over the last year, we have seen a growing demand from hard money lenders to establish self-directed IRA accounts to make attractive loans to real estate developers and builders, stated Adam Bergman, a tax partner with the IRA Financial Group. “Due to the very limited amount of financing available to many real estate developers and builders, many hard money lenders have been able to generate strong tax-deferred income from using a self-directed IRA to make hard money real estate loans.“ stated Mr. Bergman.
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.
IRA Financial Group’s 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 real estate LLC involves the establishment of a limited liability company (“LLC”) that is owned by the IRA (care of the Roth 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
Using IRA Financial Group’s self directed IRA LLC with “checkbook control” solution to make hard money loan investments offers hard money lenders the ability to make loans quickly without any custodian delay. “By using a “checkbook control” self-directed IRA LLC our clients have been able to make hard money loans quickly and without any custodian delay and without immediate tax,” stated Jacky Ospina, a retirement tax specialist.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market’s leading “checkbook control Self Directed IRA Facilitator. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.