Investors with money stuck in an IRA,or old employer's 401-k account, have traditionally shunned real estate as an investment. Custodial fees were high and there was no way to leverage the property through an IRA. There may be a solution.
Consider a non-recourse, loan to the IRA. Real estate investors can get a commercial loan, directly to their Individual Retirement Account, through our IRA mortgage program. A brief rundown:
- the mortgage is non-recourse
- down payment of 35% required (50% down payment in certain states)
- ARM products and fixed rate loans available
- rates are typically higher than conforming mortgage rates
- 25 year amortization only
Not all IRA custodians will be able to administer real property holdings. A short list of custodians for real estate investments includes:
Lincoln Trust Company
Trust Administration Services Corporation
PENSCO Trust Company
Sterling Trust Company
Equity Trust Company
Sunwest Trust Company
Self-Directed IRA Services, Inc.
Provident Group
