Mortgages and Notes

5 Tips for Private Lending to Fix and Flip Investors

September 20, 2017

When most people think about investing in real estate, being the lender rarely comes to mind.   It can be very attractive from a risk reward perspective with typical yields in the upper single digits to low double digits and without the same burden of owning real estate directly.   There are two primary ways to source private lending investments.  1. Direct to borrower 2. Partnering or investing with an existing lending company such as ours. I wanted to share five quick tips on what to look for and do if you intend to lend direct to a borrower to help better protect yourself and your investment. Continue reading…

Client Success Story – Finding High-Yield Investments

August 28, 2017

STEVE LANDAAL

This month we’re featuring our client, Steve Landaal, VP of Portfolio Management. Steve was born and raised in Wisconsin and describes himself as a huge Packers Fan. He resides in Orlando with his bride Darla of 33 years.

Steve shared with us, after losing money in the stock market and, out of desperation, he decided to seek out a better and safer way to grow his retirement savings which was when he learned about self-directed IRAs and the opportunity to find high-yield investments.

Steve met with Austin Holloway, NuView’s Business Development Manager over coffee. After meeting Steve and Austin realized they shared many of the same values personally and with business. Steve said Austin elevated his game with Self Directed IRA’s and at that point he and his wife decided to place some capital in a NuView Self-Direct IRA. Continue reading…

Alternative Investments Provide Many Options for Self-Directed IRAs

April 28, 2017

Authored by Tracy Stein – CEO & President of Prime Pinnacle Investments

The world of alternative investments was once a sleepy province populated by institutional investors making modest investments in start-ups and smaller companies. Today, the alternative investment landscape encompasses global markets in a variety of asset classes and thousands of investment firms managing trillions of dollars across the globe.

Self-directed IRAs provide an opportunity for investors to invest in alternative assets, either directly or through managed funds. When the assets are private – that is, not registered with the SEC – ownership might be limited to accredited (i.e., wealthy) investors. Purchasing individual assets or shares in alternative-asset funds offers IRA owners several benefits, including: Continue reading…

Be the Bank With Your IRA to Invest in Notes

July 6, 2016

Guest post by Bob Malecki:

If you invest in real estate you know that “cash flow is king” — but at what cost? If you own rental property you know first-hand the challenges that reoccur such as repairs, vacancy, vandalism, insurance and many more details that erode your profit and time. If you have these in your IRA, then you have added costs for property management. Plus your IRA may need to use leverage to magnify your ROI. Continue reading…

The 8 Steps to Trust Deed Investing

April 6, 2016

Guest post by: Ignite Funding

Deciding where to invest your money is never an easy task. The biggest question is: Where are you going to get the most return on your investment? With the stock market being so erratic and unpredictable, people are looking now more than ever for other ways to intelligently invest their money and diversify their investment portfolio. Continue reading…

Investing in Notes for Passive Returns

March 10, 2016

Guest post by Earl Green:

If you’re using a self-directed IRA, HSA or similar investment account, you’re probably looking for a strong and predictable alternative to the stock market roller coaster. If this is true, investing in notes may be for you. These wonderful pieces of paper can provide strong and predictable returns that can be secured with real estate. Continue reading…

Financing Rental Properties to Get the Most Out Of Your IRA

March 9, 2016

Guest post by Gregg Cohen:

Savvy investors are becoming aware that it is possible to buy properties in your retirement accounts. However, many people have no idea that financing rental properties in your retirement accounts is also possible – and very powerful!  Continue reading…

Convertible Debentures – An Option in Volatile Markets

February 29, 2016

Guest post by Nelson Garcia:

The year 2016 has, so far, been the definition of volatility, which for many was unexpected. For some investors, switching from equities to fixed income securities (bonds) would be prudent to ensure the safety of the principal and a fixed return. Continue reading…

IRA Lending with Non-Recourse Loans

November 2, 2015

Don’t have enough in your retirement account to buy that investment property you have your eye on? Your IRA can get a mortgage, but it has to be a specific type of mortgage referred to as non-recourse loans.

Non-recourse loans just ensure that the IRA owner cannot be held personally responsible for repaying a loan for the IRA. Remember the IRA has a few options when buying investment real estate. It can:

  • buy the property outright with sufficient IRA funds in the account
  • partner with another IRA or individual to pay for part of the property the IRA might not be able to afford (or to split the risk with someone else)
  • be issued a non-recourse loan to fund the full purchase of an investment property

Below, the Senior Vice President of First Western Federal Savings Bank, Roger St. Pierre, outlines important information every IRA owner should know about non-recourse loans.

Trust Deed Investing for Turn-Key Commercial Real Estate

May 29, 2015

Guest article by: Ignite Funding

When banks are not lending, hard money lenders are. Hard money lenders fill a void in the financial market, especially for short-term funding for commercial homebuilders. Borrowers seek funding typically between $500 thousand-$5 million to purchase land, start development, and get their residential communities ready for market. Because the size of the loan is too large for a community bank and too small for a large institutional bank, plus the 6-18 month timeframes do not appeal to banks either, first trust deed investing may be a great fit for investors.

There is an abundance of borrowers seeking capital to build new communities throughout the U.S. As an investor the borrowers pay you an interest rate to use your funds – making you the bank! Integrating alternative investments into your financial portfolio diversifies you into real collateralized trust deed assets. Trust deeds are considered an alternative investment option as they are not directly correlated to Wall Street or the stock market.

There are few things to consider when seeking capital preservation in collateralized turn-key real estate offering:

Acceleration – Many hard money loans are short term, ranging from 6 to 24 months in length. This provides opportunity to try a new investment out without locking your capital into a state of illiquidity.

Control – You control all aspects of the investment choosing where to invest your money, how much you earn in interest on your money, and the type of loan being offered on a project! You can choose to invest with your self-directed IRA allowing you to unlock your retirement funds and earn greater and faster returns.

Transparency – Do your due diligence on anyone you partner with for investments. Some hard money lenders offering trust deeds release Loan Portfolio Performance Records showing results and supporting data needed to evaluate the business.

Collateralized – First trust deeds provide a first person lien position on the actual property, meaning your name, or the name of your IRA when investing with a self-directed IRA, is on the title as a collective with the other investors. This provides you extra security to take back the property should the borrower default on their loan. You have control over how to disperse of the property and regain your value.

Loan-to-Value – When investing in trust deeds ensure that the underwriting evaluates the value of the loan and asset at no more than 75% LTV. Evaluating the property at 55%-65% LTV provides immediate equity in property you are loaning your money on.

There are various options in how you can invest in trust deeds however trust deed investing with a retirement account is easier than most think, this is due to the lack of awareness of self-directed IRAs. The IRS allows investors to hold alternative investments alongside typical Wall Street investments such as stocks, bonds or mutual funds in an IRA (Individual Retirement Account). In order to do this, a qualified IRA custodian, such as NuView IRA, must be identified to hold the funds on your behalf. Once an account is opened and funded, you are ready to identify new alternative investment opportunities, such as trust deed investing. When investing in trust deeds with a self-directed IRA the investments are purchased by the IRA and all revenues return to the IRA to grow your retirement account under your direct control.

 

Ignite Funding offers first trust deeds to commercial home builders in the Southwest and provides the everyday investor with the ability to expand their investment strategy.