Three Common IRA Non Recourse Loan Questions Answered
The typical final part of the American dream is being able to enjoy a comfortable retirement, but these days that future is not as certain as it used to be. In fact, almost 30% of Americans believe that they will not have enough money to live comfortably after retirement, and 40% think that they will have to work past the age they planned to retire to maintain their lifestyles. One option for ensuring that you will be able to retire when you want and comfortably is to invest with your self directed IRA.
What is a self directed IRA?
A self directed IRA is just what is sounds like. An IRA is an Individual Retirement Account. There are different types of IRAs, but with this type of account you do not have to pay the taxes on your money until you use it -- after retirement when you will fall into a lower tax bracket. That your IRA is self directed just means that you have more flexibility in diversifying the investments you make with it, since it is up to you how you invest.
How can I use my IRA to invest in real estate?
Though there are a number of different investments you can make with your IRA, a popular choice for many IRA holders is to invest in real estate. This can only be done in terms of self directed IRA lending, however, using an IRA non recourse loan. Eligible investment properties include apartments or multi-family units, commercial property, and agricultural land. All of these types of properties have the potential to create a source of income.
What is a non recourse loan?
Non recourse loans are loans that are secured. That a loan is secured refers to the borrower having to pledge collateral for the loan. Non recourse IRA loans are typically secured with real property, which is the only thing that a non recourse lender can foreclose on if the borrower defaults on the loan.
No matter what your age is now, you really ought to start thinking about preparing for your retirement. If you already have an IRA, great. Why not make the most of it? If you're interested in taking an IRA non recourse loan to invest in real estate, you should make sure that you find a suitable lender for you.