Many Americans look forward to retirement, pretty much from the day they start working. The problem these days is that fewer and fewer Americans are able to prepare well for retirement. As it is now, almost 30% of Americans do not think that they will be able to retire comfortably. Furthermore, almost half of the elderly people in America are considered to be economically vulnerable.
Preparing for retirement is essential for making sure that you will be able to live comfortably and be able to stop working at a certain age. There are plenty of ways to do this, but one of them is using self directed IRA to buy real estate. An IRA is an Individual Retirement Account, and one of the major benefits of it is that there are tax breaks, which makes it an ideal way to prepare for retirement.
Since self directed IRA’s are directed by the individual who owns it, you can make investing decisions on your own. Investing in real estate is often a popular choice because this can create a consistent source of income.
The self directed IRA lending to buy real estate works is with non recourse IRA loans. An IRA non recourse loan is a type of loan that is secured with collateral, which is typically real property. If the borrower defaults on the loan, the lender can only seize the property that was put up to secure the loan and nothing more.
The first step to buying real estate with your self directed IRA is to find the right non recourse lender. Since IRA’s can only be used to buy real estate with a non recourse loan, a non recourse lender is the only place you can go to find one.