Why Mortgage Notes Are Ideal for Self-Directed Retirement Accounts

Mortgage notes can be purchased for a self-directed retirement account very easily. Your retirement account would be the legal owner of the note, and the borrower would send the monthly payment directly to that retirement account each month. Think about what this means for a tax-deferred or even tax-free account. If you have twenty years until you retire, for example, you could easily calculate how much cash will be in that account at the end of that term. This is compound interest at its simplest.

Imagine owning a note that pays you 8 or 10 percent interest annually. The borrower deposits the payments into your IRA each month, for ten or twenty years. No up years or down years, where you lose some then (hopefully) gain it back. Just steady, almost boring deposits. You can do the math. This is a reliable, safe, and better way to plan for retirement than investing in stocks and hoping the price goes up so you can sell off your portfolio at a profit and enjoy the good life.

The best part is your money is secured by real estate. If the borrower stops paying (which is rare), there is property to sell to recover your investment.

Three Main Considerations of Any Investment

When comparing investment options, the criterion I use is straightforward. I seek an investment that protects the principal amount invested and will generate regular and consistent cash flow. It’s that simple. There are other considerations that come into play, but the general thought process is as follows:

Safety. Protecting the money invested.

Return. Realizing a return on the amount invested. It needs to pay back all principal, with additional profit high enough to gain wealth over time.

Cash Flow. Consistent and predictable cash flow. This refers to a stream of income that does not deplete principal but rather increases over time. In a scenario like this, you can live off the interest your investments generate, without ever touching the principal invested.

I have bought and sold mortgages since 2012. First with my own money, then with the capital we raised. This is a legitimate long-term investment that will be around for quite some time.

Whether you are interested in buying mortgages yourself or having a professional manage them and send you the check, these can be great long-term investments inside your NuView retirement account.

See if this is right for you by contacting us at https://paperprofitsinvestors.com.

Joshua N. Andrews
Managing Partner
Paper Profits, LLC

*This site contains educational content provided by third parties.  NuView Trust does not endorse, recommend or approve any of the companies or individuals or investment vehicles or strategies that may be discussed.  NuView Trust encourages clients to seek legal or tax advice as necessary and to perform their own due diligence before engaging in any investment vehicle or strategy.