SDIRA Lending across state

[Christian Sifuentes]

I am looking to do private lending from my SDIRA across state to someone in New Jersey. Do I need to do research as far as state guidelines, do anything different when setting up the loan agreement? I will have first lien on their property as collateral written in the contract. It is a small amount set up for 3-5 year payment at 8% interest. Any other do's and don't? Thanks

[Steven Velasquez]

Just like you said, assure you're in a 1st lien position and also have them include you as a "loss payee" on the homeowner's insurance policy.