Self-Directed IRA Real Estate Mortgage Success Stories

Click below to discover the success stories of self-directed IRA real estate mortgage investors who have skillfully navigated the market.

Investor 1 Semi-Motivated Seller

Investor Bio

$55,000 – Semi-Motivated Seller
Needs approximately $30k in repairs

Final Outcome

  • Purchased with Roth IRA for 55,000, with $5,000 down
  • Seller carried a $50k note
  • Repair Costs = $29,974
  • Sold for $125,000

TOTAL IRA Funds Invested – $36,062.00

Sale Price: $125,000
IRA Funds: $36,062
Seller Note: $50,000
Total Cost: $86,062
Total Profit: $38,938 back into my IRA

Unrelated Debt Financed Income Tax (UDFI)

$38,938 profit x 91% = $35,433.58
$35,433.58 x 39.6% = $14,031.69 =

$24,907 to Roth IRA

All investments were made in Equity Trust Company accounts.
Investor 2 Not enough cash in account, able to acquire first property using leverage

Investor Bio

Not enough cash in account, 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

Final Outcome

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%

Estate and Trust Incom tax brackets

All investments were made in Equity Trust Company accounts.
Investor 3 CESA Account - Leveraged

Investor Bio

Property Purchased with Non-Recourse Loan

Final Outcome

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%

All investments were made in Equity Trust Company accounts.

Join the ranks of these astute investors and
unlock the wealth potential of your IRA.

Common questions from IRA Real Estate Investors

What is a mortgage IRA, and how does it work?

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)

Can a self-directed IRA borrow money?

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.

What are the benefits of buying real estate with a non-recourse loan?

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 include:

  • Greater wealth-building potential
  • Portfolio diversification opportunities
  • Financial flexibility
  • Quick and easy access to investment capital
  • Leveraged income advantages
  • Personal asset protection / Limited IRA liability

What types of properties can I buy with an IRA mortgage?

  • Single property IRA purchase
  • Multiple property IRA purchase
  • Improvements to property already owned by your IRA

What are the minimum requirements?

  • IRA must maintain liquidity of 10-15% of the loan value
  • Property built after 1940
  • Debt-coverage ratio (DCR) of 1.20 – 1.25%
  • A 50-70% loan-to-value (LTV) ratio

What information will I need to provide during the application process?

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.

How long does it typically take for IRA Power Loans to process an application?

Our quick and easy process can take as little as 14 business days to close.

How do I apply for a non-recourse mortgage with IRA Power Loans?

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.