Why You Should Choose Non Recourse Lending


 

Non recourse loan agreement

You have already started to think about your retirement. That puts in you in the minority in America. An estimated 1 out 4 middle class Americans claim they will have to work till age 80 to comfortably retire. If you want to create long-term wealth, contact a non recourse lender.

A non-recourse loan is a secured loan. Typically these loans are secured through collateral in the form of property. Non-recourse loan debt is typically limited to 50% or 60% loan-to-value ratios. Non recourse IRA loans are traditionally used to finance commercial real estate, shipping or projects with high capital expenditures. Non recourse borrowing gives the real estate owner the tax breaks of a tax-pass through partnership structure and simultaneously limits personal liability to the value of the investment.

If a non-recourse loan is used to fund a project, often times the lender is only entitled to profits and property associated with the use of the loan. If you want a non recourse commercial loan there are several steps you must take. You must establish an account with a self-directed IRA custodian. The second step might be the most important as you have to find an income producing property. Then make sure to execute a non recourse loan agreement in the name of your IRA. Finally, complete a “Direction of Investment” for your IRA Custodian Directing them to fund your purchase with IRA funds.

Self-directed IRAs allow you to to invest your savings in funds and real estate that you think will increase your retirement fund. A Self Directed IRA can be used for a variety of investments. Some of the investment options available in self directed IRA lending include real estate, stocks and mortgages. IRA prohibited transactions are transactions that Congress has deemed inappropriate between IRAs and certain people associated with those IRAs. Some of the prohibited transactions include borrowing money from it and selling property to it.

If you want to grow your investment portfolio, contact a non recourse lender. Non recourse loans can be perfect for a several different investments, so check out your options. You may not have to wait until you are 80 to retire.

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