This real estate market has been tough on many investor's credit history.  Investor's that walked away from a bad investment or upside down on a property will have their credit ruined for many years.  Now these investors would like to either buy more property or find a new residence but their credit is shot.  Self Directed IRA lending is a great alternative to bank financing.  Many investor want to pick up these forclosure deals and our Self-Directed IRA clients are stepping in to help by lending money via their IRA.   Let me give an example of a deal one of our client's did.

Our client John was introduced Linda who wanted to pick up a foreclosure to live in.  Unfortunately Linda's Credit was not in very good shape after she had a property go upsided down in the market.  Linda put 30% down on a foreclosure and our client John gave her a 2 year note at 9% with one point from his IRA account.  All the interest was tax free to the IRA account.   This will give Linda time to repair her credit while at the same time give a good return for his IRA.

If you would like more information on Self Direction and investing in notes, please call us at 239-333-1031.  Dave Owens, CPA, CES is the managing member of Entrust SWFL.