It is true. You can invest part or all of your IRA in promissory notes backed by Mortgages or Deeds of Trust.
The reason most people do not know this is that most IRA’s are held by custodians who don’t support such investments. Therefore, many believe that their IRA’s can only be invested in stocks, mutual funds, and low fixed rate funds.
To invest in notes (or real estate, or just about anything else) you must simply transfer part or all of your IRA to a custodian who will support such investments. Typically these IRA accounts are called “self-directed IRA’s” or even “real estate IRA’s.” (See the links on this page for note-friendly IRA custodians.)
Of course, there are limitations. Your IRA cannot own your own house, for example. I won’t go into detail on the limitations in this post, but what you need to know is that, as long as you are looking at a note or real estate purchase purely as an investment, you can hold it in your IRA.
Purchased and managed properly, the returns can be fantastic. If you would like to work with NoteBuyingPros to grow your retirement fund, please contact us.
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