Note Question-Roth IRA Deal. Private, Non-Recourse Loan, California
Hello everyone. Has anyone bought a property with their Self Directed IRA, using private financing?
If so, where did you get the actual note? To clarify, I have the funding lined up but realize that I must obtain a Non-Recourse loan in order to satisfy the rules for a SD IRA. When speaking to the title company, they were not familiar with this type of transaction and could not provide the actual "non-recourse" note or verbiage. I also reached out to Equity Trust who also said that they do not have blank notes or templates.
I believe that a purchase money loan in the state of California is non-recourse by default anyways, correct?
Could I simply use the standard Promissory Note and Deed of Trust for purchases that the title companies normally provide when facilitating private financing?
Thank you in advance for sharing your experiences and knowledge
New to BP and loving it,
Brandon
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#1 General Real Estate Investing Contributor
- Investor
- The Woodlands TX / Avon, CT
Actually, non recourse is broader than no personal guarantees. It means that the only recourse the lender has if payments are not made or the deed of trust is violated is to foreclose on the property. The lender can not even attempt to collect from the borrowing entity.
- Don Konipol
