Self Directed IRA Loans

Engaging in private lending opportunities with your IRA is yet another perk to using a self directed IRA with New Direction. Freedom to invest in alternative assets, such as self directed IRA loans, allows our clients to bring balance to their IRA  investments, which have traditionally been dominated by the securities market. If you have knowledge and experience in the private lending market, or have always been interested in utilizing your IRA funds to make private loans, self Directed IRA loans could be an excellent way to diversify your retirement portfolio.

The ability for our clients to invest in self directed IRA loans requires holding an account with an IRA administrator that has the capacity to manage the bookkeeping of your private lending investments. Many financial institutions that promote self directed IRAs only allow their account holders to invest in assets that their institution can easily access, or assets that provide their employees with commission (e.g. stock brokers). Through New Direction IRA, a self directed IRA allows you, the investor, to choose from an almost limitless array of alternative assets – including self directed IRA loans. Once your private lending IRA is established with New Direction, you may direct us to invest your IRA funds in any private loan that you choose, providing it falls within IRS guidelines.

Self directed IRA loans allow investors to have complete strategic control over the person or entity with which they choose to lend their IRA funds, as long as the recipient is not a disqualified person or entity. You have the power to define the lending terms and choose the collateral that you are most comfortable with. Your self directed IRA can even hire professional help to generate loan documents and/or provide loan servicing. All expenses for this process are paid through your self directed IRA.

To learn more about self directed IRA loans, please consult New Direction’s self directed IRA loans webpage.