Can you create an IRA loan for profitability? Many people ask what is the best IRA for lending and profit splits. There are many ways to earn cash flows when making IRA investments. There are some transactions that have multiple benefits when you make use of the funds in your IRA. Consider this situation: An IRA retirement account owner has $250,000 in the account. The individual has a friend who is a contractor and needs funds in order to build an apartment complex. The money in the IRA can be lent to the contractor on a determined interest basis.
The money is then used for a down payment on the property that is needed. An additional load will be obtained by the contractor to cover the rest of the balance of the project. The loan from the IRA will be repaid in full upon completion of the property. An additional benefit to using the funds in the IRA is that the two people will be able to split the profits when the apartment complex is sold. Now, there may be some questions that will arise regarding whether this is a viable deal. First, is the loan from the IRA secured by the property? Second, is the agreement to split profits part of the deal for the contractor to obtain the IRA loan? Continue reading ‘IRA Loan – Using Your IRA For Lending & Profit Splits’ »