IRA Loan Debt Service Coverage

IRA Loan Debt Service Coverage is the ability of the rental property that the self directed IRA (the Plan) owns to generate enough income or rental stream to pay all the operating expenses of the property and the loan payments with a cushion. A Non Recourse loan can only be paid back by the income…

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Titling Self Directed IRA Owned Properties

Titling self directed IRA owned properties (naming the entity) is different than owning a property in your own name or privately funded LLC. If your self directed IRA is held by a custodian or administrator and you purchase a property with that account, the name on the Deed or ownership document filed with the county…

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Debt Service Coverage: What Does It Mean?

Our non-recourse lenders will dive into the debt service coverage ratio (DSCR) in today’s blog. Understanding the DSCR is instrumental in planning how to leverage your self-directed IRA with purchasing a rental property. Read on to find out everything you need to know about the DSCR. How Much Debt Will a Property Support? Purchasing real…

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Your Self-Directed IRA and UBIT

This time of year has me thinking about the end of the year issues like taxes and how the IRS treats investments in IRAs that are subject to income taxes. You might ask the question, “I thought IRAs didn’t have to pay income taxes until withdrawals are made?” Well, there are instances where income taxes…

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Managing IRA-owned rental properties

When buying real estate within a self-directed IRA, investors must choose a “custodial” firm and weigh the fees it charges. The custodian holds title to a property in accountholders’ names and can steer rental income into mutual funds or stocks of their choosing. The account holder also must choose a means to manage the property…

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Non-Recourse Loans and Real Estate for Your IRA

Using leverage in an IRA to purchase real estate assets is not a new idea. It has been perfectly legal since 1974 when the original rules were established for individual retirement arrangements (IRA’s). By that, I mean that if you wanted to purchase a piece of real estate to hold in your IRA you could…

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Buying Real Estate for Your IRA

If you think that your IRA investments are limited to stocks, bonds, and mutual funds, you’re wrong. Self-directed IRAs can own real estate, too. Here’s what you need to know about investing in property for your retirement account. What is a self-directed IRA? Self-directed IRAs, as the name implies, are controlled by you, rather than…

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Non-Recourse Loan Reserves

Non-recourse loan reserves (reserve funds left in your IRA) are an important piece of the process when planning that real estate purchase in your self-directed IRA, Solo 401(k) or IRA LLC. We as a lender and you as an investor should concern yourself with the idea of keeping a liquidity buffer in your plan so…

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Non Recourse Loans for your IRA

For your self-directed IRA, Non Recourse Loans are a great way to add leverage to that real estate purchase in your self-directed IRA (SDIRA), Solo 401(k), or IRA funded LLC. You don

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