Secured Notes & Trust Deeds in Your Imagine IRA
Unlock Consistent Income and Security with Private Lending
At Imagine IRA, we believe in empowering you to diversify your retirement portfolio with powerful, income-generating alternatives. Secured notes and trust deeds are two of the most popular ways to put your IRA to work as a private lender—offering the potential for steady returns, asset-backed security, and flexibility to fit your investment goals.
What Are Secured Notes and Trust Deeds?
Secured Promissory Notes
A secured promissory note is a legally binding agreement in which a borrower promises to repay a specific sum to your IRA within a set timeframe. What sets it apart? The note is “secured” by collateral—such as real estate, vehicles, or other valuable assets. If the borrower defaults, your IRA has a legal claim to the collateral, providing an extra layer of protection.
Trust Deeds (Deeds of Trust)
A trust deed is a special type of secured note used in real estate lending. Here, your IRA acts as the lender, the borrower pledges real property as collateral, and a neutral third-party trustee holds the title until the loan is repaid. If the borrower defaults, the trustee can initiate a streamlined foreclosure process, helping your IRA recover its investment more efficiently than with traditional mortgages.
Why Invest in Secured Notes & Trust Deeds with Your IRA?
- Negotiate Your Terms: You set the interest rate, repayment schedule, and collateral requirements—tailoring each deal to your risk tolerance and goals.
- Reliable Cash Flow: Enjoy regular interest payments, providing a steady stream of income to your IRA.
- Asset-Backed Security: Collateral reduces risk and offers a path to recovery if the borrower defaults.
- Hands-Off Real Estate Exposure: With trust deeds, you can benefit from real estate-backed investments without the headaches of property management, tenants, or maintenance.
Key Considerations and Risks
- Default Risk: As with any loan, there’s always a risk the borrower may not repay. Collateral helps mitigate this, but due diligence is essential.
- Due Diligence: Carefully vet borrowers, review collateral value, and ensure all legal documents are in order before funding any note or trust deed.
- Liquidity: These investments are typically less liquid than stocks or mutual funds. Be prepared to hold the note until maturity or until the borrower repays.
IRS Rules and Compliance
- Market Rate Interest: The interest rate must be reasonable and reflect current market conditions.
- No Self-Dealing: You cannot lend to yourself, family members, or other “disqualified persons.” All transactions must be at arm’s length.
- Prohibited Industries: Your IRA cannot invest in or be secured by assets related to the cannabis industry or other prohibited businesses.
- Proper Documentation: All payments, expenses, and transactions must flow through your IRA—not your personal accounts.
Why Choose Imagine IRA for Secured Notes & Trust Deeds?
- Expert Guidance: Our team helps you navigate the process, from structuring deals to ensuring compliance and recordkeeping.
- Modern, Secure Platform: Manage your notes, trust deeds, and other assets in one easy-to-use portal.
- Flexible Investment Options: Lend to real estate investors, businesses, or individuals—always with the security of proper documentation and collateral.
Ready to put your IRA to work as a private lender?
Imagine the possibilities when you combine the security of collateral with the power of tax-advantaged growth. Contact us today to learn more about investing in secured notes and trust deeds with your Imagine IRA!
