Becoming The Bank With your IRA

Who we are We’ve been active investors for 20+ years We have operated a successful private mortgage lending business since 2011 We have a combine mortgage lending experience of 50+ years Licensed real-estate broker in two states for 30 years We’ve been active investors for 20+ years We have managed a private pool mortgage fund for accredited investors since 2014

Finance Basics, Borrower Risk

Finance Basics,Collateral

Lowest Risk to Highest Owner- occupied single family Single purpose commercial or raw land

Why is lending from your IRA beneficial? You control the asset without being responsible for it Lets start with taxes It’s more Liquid Lower risk

Who do I lend to? Someone you Know, Like & Trust Legal Entity Not family

OPM Other Peoples Money How Much Money Do I Need? Not much-Arbitrage

What Documents should I use? Hazard or builders risk insurance Assignment of rents Get title insurance Use an attorney

How Do I Conduct Due Diligence? Borrower Property Appraisal subject to completion & as is How Do I Conduct Due Diligence? Credit & background check Entity documentation Validate repair cost Identification proof Income & assets Inspection

Who Services The Loan? You can pay a servicer Charge a late fee You collect

How Do I handle Rehab Funds? Inspections every time Released in arrears Separate account

How Do I Come Up With a Payoff? Principle and interest Interest only Use the Bret Whistle calculator http://bretwhissel.net/amortization/ How Do I Come Up With a Payoff? Loan amount plus unpaid interest

Rinse & repeat everything How Can I Do This Again? Rinse & repeat everything

For the slide notes & sample lender doc’s Questions? Text: Quest Expo To: 39492 For the slide notes & sample lender doc’s