Alternative Assets
Act as the bank. Issue hard money loans, promissory notes, and mortgages with high interest rates directly from your IRA LLC checking account.
Private lending is one of the most powerful ways to build tax-advantaged wealth within a Self-Directed IRA. By forming an IRA LLC, you gain the ability to act as a private bank, issuing loans secured by real estate, business assets, or other collateral, with all interest and principal payments returning to your retirement account tax-free or tax-deferred.
Unlike traditional IRA custodians that may take weeks to process a loan request and charge exorbitant per-transaction fees, an IRA LLC gives you "checkbook control." When a lucrative lending opportunity arises, you can fund the loan instantly by writing a check or wiring funds directly from your LLC's bank account.
Short-term loans secured by real estate, typically used by property flippers or developers. These often carry higher interest rates and provide a tangible asset as collateral.
Unsecured or secured loans made to businesses. You dictate the terms, interest rate, and repayment schedule.
Long-term financing secured by a first or second lien position on residential or commercial real estate.
Hybrid debt and equity financing that gives the lender the right to convert to an equity interest in the company in case of default.
While private lending offers exceptional returns, strict adherence to IRS regulations is mandatory. The most critical rule is avoiding "prohibited transactions" with "disqualified persons."
Your IRA LLC cannot lend money to:
All loans must be made to third parties for investment purposes, and all terms must reflect fair market value. Our team ensures your IRA LLC Operating Agreement is structured to maintain strict IRS compliance.
Schedule a consultation to discuss how a Self-Directed IRA LLC can facilitate your private lending strategy.
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