Welcome to our real estate investor showcase, where we highlight how investors are leveraging their IRA for property investment. These success stories demonstrate the flexibility and power of utilizing non-recourse loans within your self-directed IRAs.
Whether acquiring new properties or enhancing existing ones, non-recourse financing to your IRA from IRA Power Loans empowers you to capitalize on real estate opportunities and build wealth for your future.
Click below to discover the success stories of self-directed IRA real estate mortgage investors.
$55,000 – Semi-Motivated Seller
Needs approximately $30k in repairs
Sale Price: $125,000
IRA Funds: $36,062
Seller Note: $50,000
Total Cost: $86,062
Total Profit: $38,938 back into my IRA
$38,938 profit x 91% = $35,433.58
$35,433.58 x 39.6% = $14,031.69
$24,907 to Roth IRA
Not enough cash in account, but still able to acquire first property using leverage.
Opened Roth IRA: 2012
Bought Property in 2013: $135,000
Borrowed: $130,000, $5,000 down payment with newly established Roth IRA
Repairs: $34,500
Current loan balance: $100,000
Debt %: 75%
Annual Depreciation: $4,000
Annual NET Operating Income: $9,357
IRA and 990-T fees: $980
NET Income after Depreciation: $5,357
NET Income Subject to UBIT: $4,017 * 24% = $964
TOTAL Invested Cash: $39,500
Annual Cash Flow: $7,413
ROI: 18.75%
Property Purchased with Non-Recourse Loan
EMD: $500
Total Investment: $1,489.23
Loan for purchase and rehab: $190,000
Loan fees/interest: $17,100
Return of capital upon sale:
$251,975.82 – $190,000 loan
+ $17,100 interest
= Total profit: $44,875.82
Estimated UBIT Tax: $16,604
After Tax Profit: $28,271.76 TAX-FREE
CoC Return: 1,899%
Case studies provided are for illustrative purposes only. Past performance is not indicative of future results. Investing involves risk including possible loss of principal. Information included in case studies was provided by investors and included with permission. Equity Trust Company [or Equity Specialty Services] does not independently verify all information provided by third parties.
A mortgage IRA is also known as a non-recourse loan. Non-recourse financing does not bear the same conventional liability of a traditional loan; in the event of default, the lender can only seize the property securing the loan. The IRA owner cannot personally guarantee the loan or use other IRA assets as collateral. (Ref IRS Pub. 590)
Yes! Using a self-directed IRA loan to invest in property can be a powerful way to build wealth. However, it must be a non-recourse mortgage, which can be difficult to obtain from traditional banks. This is where IRA Power Loans can help.
IRA Power Loans creates leverage, allowing investors to expand and diversify their self-directed IRA portfolio. Our proprietary process and innovative technologies deliver quick and easy access to the capital your IRA needs for your next investment. Benefits of a self-directed IRA non-recourse loan include:
General information including property address, purchase price and financing amount will be required for loan pre-approval. Documentation including but not limited to property appraisal, proof of insurance and operating expenses will be required with the application to complete the underwriting process.
Our proprietary, hassle-free loan process makes it fast and easy to get a loan. Start your application by answering a few basic questions. We will contact you to discuss available financing options and guide you through the next steps.
(833) 510-4189