Private Money Lenders Use Their IRAs to Get 10% Annual Return
After the onset of the U.S. Banking Crisis in 2008, the majority of banks in the U.S. disappeared overnight. Real estate investors have had to rely heavily on private money lenders to provide hard money loans in past years. Without the availability of these non-bank loans, I truly believe the real estate market would not have seen such a rapid recovery.
Many people have started to leverage their IRAs, Self Directed IRAs, and Roth IRAs to provide these private money loans to real estate investors. While some will use their IRAs to invest in real estate themselves, others have chosen to leave the work to the expert real estate investors, while they provide the financing in the form of private money loans.
For example, a private lender can charge 10%, interest only, on a private money loan to a real estate investor. This loan is secured by the property being used as collateral and the real estate investor makes monthly payments on the loan to the lender until the property is sold or refinanced by another lender. If the loan goes into default, the private lender
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