By: Jeffrey Dixon, MBA, CISP, SDIP, Vice-President of Business Development

By: Jeffrey Dixon, MBA, CISP, SDIP, Vice-President of Business Development

Raising Capital:

Are you looking for sources of money for your deals?  it is important to know that one ready and available option is retirement accounts. There is over $40 trillion dollars in these retirement accounts. Yes, that is Trillion with a T.

Any qualified person with a Self-Directed IRA or Self-Directed Solo 401k account can invest their retirement funds with you into your deals. Most people with an IRA account can move those funds from their current retirement account into a Self-Directed account. As a result, their retirement savings can be invested outside of Wall Street into alternative assets like private equity, notes, real estate and more.  If the money is at a company sponsored plan, like a 401k. 457, or TSP they can usually be moved after the person has left employment with the company.

When talking with potential investors, inquire if they have retirement funds. Many people have no idea they can invest into assets other than the stock market. Not having these discussions could limit potential investors into your funds.

There are people called “prohibited parties” who cannot invest retirement funds with you. Here is a link to information on prohibited parties and transactions. Click HERE.

Making the Investment:

They can invest in a fund, like an LLC. They can also loan you money. You and the client decide how the investment is going to be made.

We have to review and approve the investment paperwork. The investment is made in the name of the retirement account. We allow the client to sign the investment documents. This investment paperwork is submitted to us along with our Direction of Investment form.

You can read about making a loan from the IRA with our Blog article HERE

You can read about making the PPM investment by reading our Blog article HERE.

Final Thoughts:

uDirect IRA Services, LLC is not a fiduciary and does not render tax, legal, accounting, investment, or other professional advice. If tax, legal, accounting, investment, or other similar expert assistance is required, the services of a competent professional should be sought.

Consulting a tax or legal professional regarding a decision about a retirement account is a very good idea.  Contact us if you have questions about this or any Self-Directed IRA related topic. You can reach us at (866) 706-2798 or  Get started today by completing an online application HERE.

No information in this article should be considered financial, tax, or legal advice and may not be relied upon as such.