Private Lending with Self-Directed IRAs
Providing private loans to businesses is an allowable way to diversify your retirement portfolio.
Banks have recently tightened their purse strings when it comes to lending to these entities, creating a higher demand for development capital from investors. Traditional lenders – banks, S&Ls, credit unions and established finance companies have tightened their lending standards significantly. This has left a huge opportunity for smaller lenders to service the needs of perfectly solid entrepreneurs and other quality borrowers who need financing. Many times they have established track records and solid assets backing the loan application, but are still unable to obtain bank financing.
For those seeking funds, obtaining capital from a self-directed IRA owner can be simpler and faster than the loan process with institutional lenders. For self-directed IRA owners, this type of lending has the potential to bring consistent returns.
Things to consider when investing in IRA Loans:
Private IRA lending allows you to structure repayment terms and set up interest rates, you have the power of choice.
To learn more about the different ways your IRA can invest in private IRA lending contact us today.