Self Directed IRA Non-Recourse Loan
A Non-Recourse Loan is loan (debt) that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable
If the borrower defaults, the lender can seize the collateral, but the lender’s recovery is limited to the collateral.
If the property is insufficient to cover the outstanding loan balance, the difference between the value of the collateral and the loan value becomes a loss for the lender.
Self-Directed IRA may purchase investment real estate properties as another form of a tax-sheltered retirement investment.
Please consult your tax adviser). Using financing to purchase these investments allows for you to diversify without tying up all of your IRA funds.
Tired of your IRA earning lousy returns in traditional investments? Many people have found great success in investing in real estate over the past few decades holding real estate investments within their IRA. Not only can you hold these investments, you can use the power of leverage through non-recourse loans to substantially increase your returns.