One of the challenges most people have creating wealth and an abundant retirement is acquiring the money to invest. In fact, some people point at the contribution limits on retirement accounts and wonder,
“How can I create wealth if I’m limited on how much I can contribute to a retirement account either by the government or by my own financial situation?”
One of the best kept secrets of Self Directing is that your IRA, 401(k), CESA’s, and small business retirment plans are permitted, by the IRS, to borrow money to acquire more assets and compound your wealth exponentially.
There are some specific rules that need to be adhered to. As an example, there is only one type of loan that is permissible to be made to an IRA and its called a “Non-Recourse Loan.” What is a non recourse loan? A non recourse loan simply means that in the event of default, the lender will only take back the property to satisfy the debt; there is no recourse to the owner of the property, in this case, the IRA.
The next question that comes up is, “Where do I find a non recourse loan? My local bank won’t loan money to my SDIRA.”
That’s true and there are 2 places to go to get a non recourse loan for your SDIRA. One is a private lender. For example if you know someone who has money to invest, even in an IRA, they can lend your IRA the money.
The second place to go to find a non recourse loan is to a specialty lender that loves to make loans to IRA’s.
USelfDirect is making self directing easy by bringing to you lenders who make non recourse loans to SDIRA’s. Check out the Professional Resources section to find Non Recourse lenders today.
How Can We Help You?
Our team of experienced Self Directed Investment professionals are here to help answer your questions. We have years of experience and have seen nearly every type of account, investment, tax issue, funding method, and question imaginable. Give us a call and let us offer our expertise.