Whether you’re curious about the specifics of IRA-backed loans, non-recourse loan terms, or the details of using your IRA for real estate investment, our answers can clarify and guide you through every step.
Yes! Using a self-directed IRA loan to invest in property can be a powerful way to build wealth.
Yes. Investment structure, property type and other related factors are considered when assessing finance terms.
Our proprietary, hassle-free loan process makes it fast and easy to get a loan.
Our quick and easy process can take as little as 14 business days to close.
IRA loans are subject to fees similar to a typical mortgage, including, but not limited to appraisal fees, title fees and closing costs.
General information including property address, purchase price and financing amount will be required for loan pre-approval.
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.
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.
An IRA Power Loan is a non-recourse loan to your IRA. 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)
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:
Non-recourse IRA loans create leverage, allowing investors the opportunity 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 to optimize investment opportunities.
IRA Power Loans can be used in several different ways:
IRA Power Loans offers the flexibility to purchase several types of property in the name of your self-directed IRA, including single-family homes, condominium complexes, and multi-unit properties.
Our proprietary, hassle-free loan process makes it fast and easy to get a loan. Prequalify by answering a few basic questions. We will contact you to discuss available financing options and guide you through the next steps.
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 quick and easy process can take as little as 14 business days to close.
Close your IRA Power Loan with our affiliated national title company, IRA Title Pro to get a dedicated team and a faster closing.
Yes. Investment structure, property type and other related factors are considered when assessing finance terms. We will present you with a loan estimate that provides information including the estimated interest rate, monthly payments, and term length of your loan offer. Prior to accepting, your lending specialist will review the offer with you and answer any questions.
IRA loans are subject to fees similar to a typical mortgage, including, but not limited to appraisal fees, title fees and closing costs.
Yes, you can borrow additional funds by refinancing your existing loan.
There are two reasons why you typically will not be able to obtain a Non-recourse IRA loan from your local community bank, national bank, or national mortgage provider.
The first reason has to do with revenue. These institutions typically package all of their home mortgages into large pools and sell them to Wall Street. In order for a loan to be qualified to be sold, it must be in a specific format with specific terms. Non-recourse IRA loans do not fit this format, so there is not much incentive for these institutions to offer these loans to investors.
Second, banks are known for being slow to adapt, stodgy, and built on a culture of “no”. IRA Power Loans is an innovative and tech-forward approach to a powerful tool that is rarely offered in the marketplace. With IRA Power Loans’ proprietary process and easy to use tools, investors have the flexibility and power to truly harness the power of leverage, compounding interest, and tax advantaged growth.
No. IRS Publication 590 prohibits this.
When an IRA (or other tax-exempt entity) utilizes debt financing to acquire property, a trust tax (UBIT) can occur on income generated from the property; also referred to as Unrelated Debt Financed Income (UDFI) (Ref. IRC 514)
The percentage of the profits subject to taxation is determined by the percentage of the property that is debt financed. You may write off depreciation and other operating expenses on a percentage basis, which can significantly reduce the income subject to taxation. In most cases, the financial impact of the tax is minimal especially when compared to potential investment gains.
All expenses associated with an IRA owned property must be paid from the IRA. Your custodian (ex.,Equity Trust) will provide you with instructions to request a payment on behalf of the IRA.
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