Traditional lenders – banks, S&Ls, credit unions and established finance companies – have tightened their lending standards significantly. This has left a huge opportunity for smaller lenders to service the needs of perfectly solid entrepreneurs and other quality borrowers who need financing through Self-Directed IRA Lending. Many times they have established track records and solid assets backing the loan application, but are still unable to obtain bank financing.
Lending from Self-Directed IRAs can frequently be completed by streamlining underwriting procedures and providing quick funding. In exchange, borrowers are frequently willing to pay interest rates well above the market rate for bank loans.
With Self-Directed IRA Lending, you negotiate the interest rate and terms with the borrower. The Self-Directed IRA custodian does not set the terms.