SDIRA Private Lending Failure
I while ago I connected with another investor and they were very good at talking, giving advice, and laying out a long term investing plans. I agreed to provide a loan from my SDIRA LLC to their LLC to put one of the plans in action. This plan was solid with good supporting information that included some flipping and long term rentals in an area that had a good history for supporting this type of plan.
After the loan was in place, the communication started becoming less and less until it was non-existent. For the first year or so the payments were being paid on time and direct deposited. When the payments stopped, I tried to reach out and see what was going on and what was the plan to get current and continue with payments with little or no response.
I know that due to my busy schedule, work, and family, I have let time pass and I should have put more effort into this but now it seems like when the payments stopped, the LLC was already selling all holdings and closing bank accounts associated with this LLC to attempt to get funds to repay other investors (so I am not alone).
Hindsight is always 20/20 and now I require proof that partners have been successful in the role that they are going to fill. This person was clearly good with the planning but severely lacking on execution.
So now the question is can I have my Self Directed IRA LLC that holds the loan pursue legal action against the LLC and the person who signed for the loan or do lick my wounds and consider this tuition for my real live MBA?