1. Application Process

    The Application Process for a non recourse IRA or Solo 401K (or LLC) loan with First Western Federal Savings is very straightforward. Just click on the green Non-Recourse Loan Application-Get Started Today box on the lower right hand side of every page of the website, or the Application Process Tab at the top of every page of the website. That will take you directly to our Application and Docume…Read More

  2. 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 and liquid assets in the Plan. So when a lender is evaluating whether or not to make a non recourse l…Read More

  3. 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 recorder in the area of the country you are purchasing the property in must show …Read More

  4. Debt Service Coverage – What does that mean?

    December 17, 2013 How much debt will a property support? Purchasing real estate within an IRA is a good place to invest IRA funds, especially with today’s excellent buys in real estate where markets have turned south. What that means in terms of returns on investment for your IRA are yields better than bank rate CD’s, Wall Street stock and mutual fund returns, and other investments. Your inves…Read More

  5. Your Self Directed IRA and UBIT

    This time of year has me thinking about 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 are due and that is when there is debt financing used in an IRA and the investment within the IRA mak…Read More

  6. 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 accountholder also must choose a means to manage the property -- whether at her or his own direction, through a property manager or …Read More

  7. 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 do so. And if you wanted to have your IRA borrow some of the money necessary to close the transac…Read More

  8. Using IRAs to buy real estate – Six reasons to tap retirement funds now to buy rental property

    Since 1974, Americans have had the ability to use IRA assets to buy investment property. Yet the means to do that -- called a self-directed IRA -- remains one of the least known and unheralded investment vehicles in the vast financial marketplace. Bear in mind homes purchased with IRA funds can't be used for personal purposes. Doing so risks the IRS declaring the assets withdrawn and demanding imm…Read More