Can A Self-Directed IRA Hold A Mortgage?

Key Moments In This Episode
========================

00:00​​​​ Intro & Summary
00:06​​ Can A Self-Directed IRA Hold A Mortgage?
01:00​​​ Can A IRA Be A Lender

Can A Self-Directed IRA Hold A Mortgage?

A lot of people ask the question of Can A Self-Directed IRA Hold A Mortgage?

So if you’re looking to learn more about your IRA Investment options

This video is for you.

In this video, Corneilous Cannon of Apartment Investing Secrets asks Clay Malcolm, CISP Malcolm, the IRA Investment Expert from Advanta IRA the question of :

Can A Self-Directed IRA Hold A Mortgage?

Here are 3 more resources to help you with your IRA Investment options:

1) Advanta IRA, IRA Investment Expert can be reached at

Clay Malcolm, CISP

404 904-9918 Mobile

cmalcolm@advantaira.com

2) You can get the answers to your specific questions when you type your specific question below in the comment

3) I also put together a step by step guide titled“How To Use My IRA To Buy Real Estate” that you can have for free just click the link below for an easy download

👉

If you receive any value from this video then hit that like button so it will be easier to find later when you need it.

If you want more Apartment Investing secrets to investing in apartment buildings or investing in apartment complexes subscribe to this channel

To your success

Corneilous Cannon…(read more)

LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

A self-directed IRA is a retirement account that puts the investor in control of their investment choices. With a self-directed IRA, individuals have the ability to invest in a wide range of assets, including real estate. This flexibility allows investors to diversify their retirement portfolio and potentially earn greater returns.

One common question that investors have when it comes to self-directed IRAs is whether they can hold a mortgage within the account. The short answer is yes, a self-directed IRA can hold a mortgage. However, there are some important rules and regulations that must be followed in order to do so.

First and foremost, it is important to understand that the IRS prohibits certain transactions and investments within a self-directed IRA. These prohibited transactions, known as “disqualified persons” and “prohibited transactions,” include using the IRA to benefit the account holder or their family members, lending money to or from the IRA, and entering into transactions with certain family members or related entities. Therefore, if an investor wants to hold a mortgage within their self-directed IRA, they must ensure that they are not engaging in any prohibited transactions.

When it comes to holding a mortgage within a self-directed IRA, the investor must also ensure that the investment complies with IRS rules regarding IRA investments. For example, the mortgage must be a secured loan, meaning that it is backed by collateral (in this case, the real estate property). Additionally, the mortgage must be non-recourse, meaning that the lender cannot go after any other assets of the IRA holder if the borrower defaults on the loan. These requirements are in place to protect the tax-advantaged status of the IRA and to ensure that the investments are truly held for the benefit of the retirement account.

There are also specific rules regarding the repayment of the mortgage within a self-directed IRA. Any payments received from the borrower must be deposited directly into the IRA, and all expenses related to the mortgage (such as property taxes, insurance, and maintenance costs) must be paid from the IRA as well. Violating these rules could result in the IRA losing its tax-advantaged status, as well as potential penalties and taxes.

In conclusion, it is possible for a self-directed IRA to hold a mortgage, but investors must be diligent in following the rules and regulations set forth by the IRS. Working with a knowledgeable financial advisor or a self-directed IRA custodian is crucial to ensure that the investment complies with all relevant laws and regulations. By understanding and adhering to the rules, investors can potentially benefit from the ability to hold a mortgage within their self-directed IRA and diversify their retirement portfolio.