Mortgages & Notes

You can issue private money loans out of your IRA with the fees and interest accruing inside the retirement account tax-deferred or tax-free. With a self-directed IRA from NuView IRA, a retirement plan administration company based in Orlando, Florida, you have the freedom and control to “become the bank” with your retirement funds.

IRAs can issue both secured and unsecured loans:

  • Secured notes are backed by collateral, providing the lender increased assurance of return on the loan amount and interest. The most common form of collateral for a secured note is real estate. However, notes can also be secured by non-real estate assets.
  • Unsecured notes are not backed by collateral. You might consider an unsecured note for perhaps a friend or a non-disqualified relative, but it is a higher risk, though sometimes a higher reward, than a secured note.

Loan Terms

Loan terms, such as interest rate, origination fees, collateral, and maturity date, are all agreed upon by both you, as the IRA owner, and your borrower. These terms, included in the note and applicable security agreements, are then submitted to NuView when you make the request to fund the note with your IRA.

Loan Payments

Loan payments are made back to the IRA per the terms of the note. As a self-directed IRA administrator, NuView does not service loans, so, as the IRA owner, you are responsible to designate the loan servicer. The loan servicer will provide NuView with a breakdown of principal and interest, if the loan is amortizing, to ensure that payments are being made according to the terms of the note. It is prohibited for the IRA owner to retain any portion of the payments.

Loan Payoff

Whether the loan has reached maturity or is being paid off early, the payoff payment must be returned to the IRA. If needed, the client can generate a satisfaction of mortgage for the borrower and request NuView to sign on behalf of the IRA.

Five Easy Steps to Issue a Private Money Loan From Your IRA

1. Set up your self-directed IRA with NuView.
2. Identify the borrower, then determine collateral (if applicable) and loan terms on the investment. *NOTE: All IRA investments must be titled: NuView IRA, Inc. FBO {Your Name} IRA #
3. Send an Investment Authorization Form, the note, and mortgage (if applicable), along with any supporting documents, to NuView.
4. Read and approve the note, mortgage (if applicable), and any accompanying documents.
5. Based on your approval, NuView executes the documents and sends funds to escrow.

The note/mortgage is now held by your IRA. All payments must be made to your IRA and can be tracked by your designated loan servicer via online account access in the MyNuView client portal (the servicer must be listed as an IPD on the account to access client account information).