IRA investing

The Self-directed IRA

Mortgage investments can be made from a self-directed IRA. To be able to make any kind of self-directed investment you need an IRA with a self-directed IRA custodian, through an industry leader such as Equity Trust.

IRA Plans with checkbook control

By far the best structure is a self-directed IRA Plan with "checkbook control", offered through industry leaders such as Madison Trust or IRA Financial Group , where the annual service fee includes attorney support. IRA plans with checkbook control are easier to manage (no bureaucracies), and the annual cost is much lower (no transaction or processing fees). Recommended!

Traditional IRA and Roth IRA 

You can have two options with respect to when you pay your taxes:

1. Traditional IRA: The contributions are tax-deductible, but the eventual distributions are taxable. Say you invest $100,000 over time, you will get $100,000 in tax deductions. If the IRA is worth $200,000 when you retire, you will pay tax over the $200,000 as you take the funds out. 
2. Roth IRA: The contributions are not tax-deductible, but the eventual distributions are tax free.  Say you invest $100,000 over time, you will not get any tax deductions. If the IRA is worth say $200,000 when you retire, you will pay NO TAX over the $200,000 as you take the funds out. 

Flexible investment amounts and IRAs

We can often accommodate investments for less than the full amount needed with a pari-passu structure. In this case multiple investors fund only part of the funds needed, and still receive first mortgage security. It allows you to diversify, and/or match your investment amount with available cash.