Private Lending IRA

Limited access to conventional financing has increased the demand for capital while simultaneously creating an opportunity for investors to earn above market returns through private lending. Rather than qualifying based on a traditional lender’s credit profile, a borrower seeking private funds negotiates directly with the lender. Savvy self-directed investors can offer this private lending source as their Private Lending IRA provides the borrower with the capital needed to execute their investment strategy. In essence, your Self-Directed IRA can help you become the “bank.”

Private lenders can lend at rates higher than traditional funding sources and have the freedom to structure repayment terms to their advantage. A Promissory Note is one of the most commonly held private lending vehicles. A note can be secured (backed by collateral) or unsecured. As is true with all investing, private lending requires thorough due diligence and an understanding of both the opportunity and risk associated with the investment and its security instrument.