Updated over 6 years ago on . Most recent reply
Self Directed IRAs - Real Estate
We used our self-directed IRA to invest in a couple of properties as hard money lenders. The company we invested in filed for bankruptcy, liquidated their assets and no money was left to return to 90% of the investors. What happens now???
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Did they sell all of the properties? If you were hard money you should have been in 1st or 2nd position. In order for them to sell you would either have to be paid in full or your would have to accept a reduced principal amount in the terms of a short sale.
Did you invest as an equity investor in the company? Or was it a hard money loan on the property? If your loan was setup properly they can't just sell the property without paying off the liens. If you had an equity investment in the company, then you are in a more challenging situation. I would recommend an attorney.