Advanta IRA Administration Hosts Lunch and Learn to Show How Self-Directed IRAs Be the Bank and Fund Notes, Loans and Mortgages

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Self-directed retirement accounts allow a broad variety of alternative investments that have the potential to build wealth in those accounts at a better rate than traditional investment methods. Private lending in the form of notes, mortgages, and other loans can help boost the earnings in a self-directed IRA.

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In private lending transactions, the self-directed IRA is in essence the bank, extending loans to qualified individuals or entities for things such as new home purchases or for business start-up or expansion capital.

Self-directed IRAs allow account owners to decide how to invest their own funds instead of relying on third parties to choose investments for them. One of the most popular alternative investments allowed within self-directed IRAs is private lending. “In private lending transactions, the self-directed IRA is in essence the bank, extending loans to qualified individuals or entities for things such as new home purchases or for business start-up or expansion capital,” says Jack Callahan, Managing Partner of Advanta IRA Administration. Private loans are also made to other investors to use for their own investment choices. These loans are hard money types and involve repayment over a predetermined period of time, with a set interest rate on the amount of money loaned.

The amount of interest charged is how the IRA or other self-directed plan earns a profit. Typically, when loaning funds for a mortgage for either personal or commercial property, the loan is secured with that piece of property. “If the mortgagee defaults, the IRA takes possession of that property at which point the IRA owner can decide to sell it or lease it out…which builds additional funds within the IRA,” says Callahan. If there is any equity in the property, the loan can be secured by that equity, as well.

The lunch and learn offered by Advanta IRA covers the various types of loans that clients can make from out of their self-directed IRA accounts, as well as the benefits and the perils that can come with being ‘the bank.’ Join Monte Smith, CISP, of Advanta IRA to discuss these topics and more, with examples of such transactions encountered in our experience at Advanta IRA.

Event: Lunch and Learn: Be the Bank—Funding Notes, Loans, and Mortgages Using a Self-Directed IRA
Date: November 22, 2013
Time: 11:45am-1:00pm
Location: Advanta IRA Administration, 3525 Piedmont Rd NE, Bldg. 8, Ste 101, Atlanta, GA, United States, 30305
Cost: No charge, lunch is provided.
Registration: Contact Teresa Chin at tchin(at)advantairagroup(dot) or by phone at
678-513-8913 ext 1147

About Advanta IRA

Advanta IRA Services, located in Largo, Florida, has been in operation for over 8 years, providing administrative service to owners of self-directed IRAs throughout the Tampa Bay and Sarasota, Florida regions. Advanta IRA Administration offers a second location serving the Atlanta, Georgia area and surrounding regions. Both offices are managed by Jack Callahan, J.D., CFP™. Advanta IRA offers classes, seminars and other educational tools designed to assist clients in managing self-directed IRAs by investing in real estate, notes, private placements and other non-traditional assets that have the potential to maximize IRA earnings on a tax-free or tax-deferred basis.

About Jack Callahan

Jack M. Callahan, J.D., CFP™, is the managing partner at Advanta IRA Services in Largo, FL and Advanta IRA Administration in Atlanta, GA. Jack established the corporate office, Advanta IRA Services, in 2003. Prior to that, Jack delivered specialized counsel to real estate investors, small business owners and real estate professionals on tax, legal and financial matters. As an industry expert, Jack is a frequent speaker on the topic of self-directed retirement plans and an accredited continuing education instructor for the Florida and Georgia Bar Associations, Florida and Georgia Real Estate Commissions, and The American Institute of Certified Public Accountants. He earned his bachelor of science degree in finance and multinational business from Florida State University and his law degree from the University of Florida College of Law.

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