Using self-directed IRAs as private money lenders allows the accounts to essentially be the bank in extending loans for mortgages, trust deeds, secured and unsecured notes, and even for things such as judgments and structured settlements.
Tampa, Florida (PRWEB) December 01, 2014
Diversity is essential to successful retirement portfolios. Savvy investors know that using their self-directed IRAs as private money lenders offers that diversity and has the potential to garner substantial returns on their investments. In these transactions, the IRA plays the part a typical lending institution does in loaning money to borrowers seeking to finance mortgages and other endeavors.
“Using self-directed IRAs as private money lenders allows the accounts to essentially be the bank in extending loans for mortgages, trust deeds, secured and unsecured notes, and even for things such as judgments and structured settlements,” says Jack Callahan, managing partner of Advanta IRA Services based in Largo, Florida. Clients of the self-directed administrator use these accounts to acquire assets in nearly any type of lending transaction the investor deems to be potentially successful.
When investors self-direct their accounts, they gain control over their own investment funds and decisions. Private money loans are just one example of the many diverse alternative investments permissible in these plans. The owner of the IRA is able to perform due diligence and personally vet the investment.
- The IRA owner chooses the loan recipient, dictates the terms of the loan, and also decides whether to provide a secured or unsecured loan.
- Secured loans are backed by collateral to protect from default. For example, if a note is extended for a mortgage and the borrower defaults, the IRA can take possession of the home.
- Unsecured loans typically are offered at a higher rate of interest in lieu of collateral.
- Profit is largely gained through earnings on interest rates and this income flows directly into the self-directed IRA on a tax-free or tax-deferred basis.
“Private lending through a self-directed IRA offers benefits for the borrower, as well,” says Callahan. The lender (IRA) is able to provide a loan to the borrower much faster and possibly with more accommodating terms than traditional lending institutions.
Advanta IRA Services is holding this webinar on December 11th to educate investors on how to successfully use self-directed IRAs as private money lenders. Investors of all levels are invited and encouraged to attend.
Attendees gain knowledge in the following areas:
- Different loans Advanta IRA has seen clients make out of their IRAs
- Benefits private lending investments can offer
- Disqualified persons and prohibited transactions
- How an IRA can actually be the borrower on a transaction and non-recourse loans
Event: Webinar—Be the Bank Using a Self-Directed IRA
Date: December 11, 2014
Time: 12:00pm – 1:00pm EST
Register: In advance by contacting Larissa Greene by phone at (800) 425-0653 x 1140, or by emailing lgreene(at)advantairagroup(dot)com.
About Advanta IRA
Advanta IRA Services, located in Largo, Florida, has been in operation for over ten 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.