Hi,
I know someone who wants to lend me money from his retirement account.
I have suggested that he set up a self-directed IRA, which could then put his money into an escrow account, where he could basically act as a mortgage broker, using his self-directed IRA to invest in trust deeds.
Would someone with knowledge and experience please provide more insight into this? I want to be able to walk him through it step by step.
Thank you
Have him speak with a third party administrator like uDirect IRA or Quest IRA.
I could say just go talk to so and so but I want to be able to explain it to him.
So I would say something like:
1. Set up self-directed IRA
2. Set up an LLC and join it through your IRA
3. When I have a deal, you will extend me a mortgage through your LLC, and your LLC will have a trust deed.
Drive him to their office or call them on the phone together to answer his questions.
It's best to have an expert explain the process than to risk you trying to become an expert yourself & make a mistake.
The message will have more credibility coming from a 3rd party.
I use Guidant Financial for my SD IRA. I like that you have a thorough training/education component to start. Plus they include a mandatory legal consultation as part of account setup. Their upfront account setup fee is higher but it's a fixed cost. Thereafter you have a low annual fee($150) that's not based on the value of your assets. I write a check at the moment I need funds from my SD IRA owned LLC's checking account - I don't have to fill out paperwork to ask somebody to please send me some money. It is definitely a "big boy" account and you have to know the rules. But I am confident that Guidant Financial did a great job setting me up for success!
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