Using Your IRAHave An IRA Or Pension Plan?Put those funds to earn better returns with less hassle. Making real estate loans is a widely accepted use for IRA’s and other Retirement Plans. However, most people do not know that you can make private mortgage loans using the funds which are already in your IRA’s and other retirement plans rather easily. Think of the power of loaning out funds at high interest rates that are Tax free or Tax Deferred! What You Need To Do FirstIf you have an IRA or retirement account that you want to begin using to earn better returns as a private lender, there are two things you should do:
In order for you to use retirement accounts for loans they must first be administered by a third party custodian. We have worked with several custodians, but we have found that a company called Equity Trust is the most flexible, efficient, and cost effective in the long run. You can visit them on the web at www.trustetc.com or simply talk to us and we’ll help you with the set up of your account. After selecting your custodian, you simply send a transfer form to them and they’ll do all of the work for you. Or, if you work with Equity Trust, you have what’s called “true checkbook control” and receive a checkbook from which you can write checks directly from your IRA account without the sometimes lengthy custodial approval process that goes with so many other custodians. Once you’ve done that you are ready to make private mortgage loans. A Simple ProcessAs you can see, the process of using your IRA to earn better returns as a private lender is much more simple than it seems. Roll your IRA over into a Self-Directed IRA using the custodian of your choice (we prefer Equity Trust), and you’re good to go.
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