What Is A Promissory Note | How It’s Used In Lending From A Self-Directed IRA Or 401K

The Promissory Note or note payable is still used in banks today.

Walk into your average local bank and ask them for a loan. That agreement to loan you money is going to be on a promissory note. And, if that loan is to buy a house, the promissory note is going to be secured by the asset, or the house that you want to buy.

So, what does that mean to a retirement account? Well, there are a lot of investors who use their IRA to be the bank.

They use their IRA to produce the note document – or the note payable – to an investor to buy, sell, and flip properties.

Turning your IRA into a bank could be a great investment opportunity for those of you who are looking for an investment that doesn’t require a lot of work.

Think about it, using your IRA Like a bank is the most passive way to invest.

In this scenario, you’re putting your money in the hands of a local real estate investor or local business. They’re providing all the sweat equity.

Your IRA is just providing the capital. And, if you do it correctly, the capital that you’re loaning is secured by either the company’s assets, or the asset itself.

If you’re loaning to a local real estate investor, you don’t have to worry about toilets, tenants, or any work, just big profits.

Now note investing might not be for everybody. However, with the right education and the right resources, you may find that this is an investment strategy that works for your lifestyle.

Want more?

If you’re interested in learning more about how to turn your IRA into a bank, make sure to check out our future webinars from NuView Trust company.

We talk about note investing from all different angles. We talk about note investing from experienced note investors who have been doing this for decades.

And most importantly, we talk about doing this investment strategy within your IRA or within your 401k.

Why? Because, it gives you the best tax benefits of any vehicle, where your interest payments back to your IRA are tax-deferred – or even better – completely tax-free.

If this was helpful to you, make sure to stay connected with NuView Trust by doing the following:

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We go live with education almost daily.

We love to provide investors the true story of what’s possible inside of an IRA, and possible inside of a 401k.

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