Significant demand for hard money financing from real estate developers attracting self-directed IRA real estate investors
IRA Financial Group, the leading provider of self-directed IRA LLC solutions, announces the findings of an internal report that shows that hard money lending for real estate has become a popular investment option for self-directed IRA investors. The IRS has always permitted an IRA to lend money to non-disqualified persons. The definition of a “disqualified person” (Internal Revenue Code Section 4975(e)(2)) extends into a variety of related party scenarios, but generally includes the IRA holder, any ancestors or lineal descendants of the IRA holder, and entities in which the IRA holder holds a controlling equity or management interest “With IRA Financial Group’s checkbook control self-directed IRA LLC solution, one can use their retirement funds to make IRA hard money loans, either secured or non-secured, to non-disqualified persons and generate tax-deferred or tax-free returns in the case of a Roth IRA,” stated Jen Burris, a self-directed IRA specialist with the IRA Financial Group. “As the manager of your checkbook control IRA LLC, the IRA holder will have control over his or her IRA funds so that making a hard money loan can be made through a local bank account with no transaction costs or annual account valuation fees,” stated Ms. Burris. The primary advantage of making hard money loans with retirement funds is that all rental income generated by the investment is tax-deferred until a distribution is taken or tax-free in the case of a Roth IRA.
With IRA Financial Group’s self directed IRA LLC solution, traditional IRA or Roth IRA funds can be used to buy real estate throughout the United States and globally in a tax-deferred account by simply writing a check and without the need of custodian consent or steep custodian fees. “Of course one must due their diligence on the real estate note their self-directed IRA is purchasing, but, in general, purchasing real estate notes is a great way to get into the real estate market as a passive investor using IRA funds,” stated Adam Bergman, a tax partner with the IRA Financial Group.
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 provider of self-directed IRA LLC and Solo 401(k) plans. 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.