Did you know that you could use your 401k, or IRA to loan money as a private lender? Many of our lenders use their IRA’s to loan money and for very good reason. Each time you receive an interest payment it is tax free! If you would like to earn as much as 14% with your IRA then you will need to rollover your IRA to a self-directed IRA custodian. There are many self directed IRA custodian companies. Here is a list of some of the companies that we have seen our private lenders use and have good results. (Please note that we are not affiliated with any of these companies and we advise you to do your own due diligence and consult with your CPA and attorney)
The IRA Club: http://iraclub.org
Equity Trust: https://www.trustetc.com
How Does It Work?
If you have an IRA or 401k the first step is to contact a self-directed IRA custodian like one of the custodians listed above. They will help you “rollover” your IRA into a self-directed IRA or even a “check book IRA”. At that point your funds will be available to lend.