An Investor ’ s Guide to Investing Retirement Funds in Real Estate
By Mark Robbins , J . D ., CEO
Image by Nattanan Kanchanaprat from Pixabay
Some History
The ability to purchase real estate with your IRA or other retirement funds has been in existence for many years . However , until 2004 , banks in the United States would not lend money to the investors without requiring the investors to guaranty the loan . If an investor wanted to buy real estate with retirement funds , they had to pay in cash . In 2004 , a littleknown bank in the midwest became the first residential lender to create what today is known as a nonrecourse residential loan . This program was originated to allow for the purchase of real estate with various retirement funds such as : selfdirected retirement accounts ( SDIRA ), Roth IRA , Solo 401K , an
IRA / LLC account , or other trust accounts with retirement funds .
With this type of loan , the nonrecourse loan , the investor can obtain leverage with a mortgage to buy one to fourunit properties . Today , it is now a highlyacceptable and useful way to invest one ’ s retirement funds .
Many of the betterknown retirement fund custodian companies such as Pensco Trust ( Denver ), Equity Trust ( Ohio ), uDirect IRA ( Irvine , CA ), IRA Services ( San Bruno , CA ), New Direction Trust Company ( Colorado ), Lending Resources Group ( owned by Mark Robbins , your author ), and other retirement management firms have passed the word on to their investors that they can use a nonrecourse loan to invest their retirement funds in real
41 estate . In addition , a few banks have cropped up since the first pioneering bank in 2004 to provide nonrecourse financing for all different types of residential properties .
Lending Resources Group ( LRG ) has become a wellknown expert in nonrecourse lending . The author has been counseling investors since 2004 about the “ ins and outs ” of investing retirement funds in real estate . He has established longterm relationships with many of the custodial companies as well as the lenders in this unique lending arena . His experience and knowledge with the nonrecourse loan will offer the borrower the best recommended procedures in determining the appropriate lenders and their respective lending for the investor ’ s property to be financed .