Secured and Unsecured Notes

Investing in Notes Using your Self-Directed IRA/401(k)

Overview

 

While notes are one of the most common investments, no two notes are ever alike. The terms of the note

are completely up to you to decide, and there are several guidelines you must keep in mind.

You may not lend to any disqualified person or company.

 

Disqualified persons include yourself, your parents, grandparents, children, grandchildren, spouse or any of their

IRAs as well as any company that they own a significant portion of. (See: Prohibited Transactions)

 

The notes must be real economic transactions

Your IRA must benefit from this note, which means the interest rate must be realistic. A common question is,

 “My brother is not a disqualified person, can I lend him money to buy a new car at 0% interest?” No, because

your IRA is not benefiting from this transaction.

 

Note Requirements:

 

Lender Name: “EntrustCAMA FBO CLIENTS NAME Acct # XXXXXX”

Lender Address: 5 Valley Square Ste.103, 512 Township Line Road, Blue Bell, PA 19422-0119

Client Approval: The notes must be signed as “read and approved” by the client. This may be

handwritten in the margins by the client.

Original Note: The original note MUST be sent to us for safekeeping immediately after funding and execution.

 

Loan Service: We are not loan servicers; this is the client’s responsibility.

 

Documents required prior to funding (must be received at least 48hrs prior to funding)

 

1. Buy Direction Letter (Promissory Notes/Real Estate Note)

2. Original Loan Notes (Must meet above requirements)

3. Promissory Note Acknowledgement (Completed by Borrower)

 

Additional Documents:

 

Real Estate Note:

4. Certificate of ownership of Deed of Trust

5. Preliminary Title Report of Commitment

6. Buyer/Borrower’s closing statement

7. Servicing agreement

8. Evidence of hazard insurance

 

Secured Note:

4. Certificate of ownership

5. Buyer/Borrower’s closing statement

6. Servicing agreement

 

Getting started is easy. Contact an EntrustCAMA professional to establish a self-directed IRA or open your account online today.

 

 
 

 

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BLUE BELL |Main Office |5 Valley Square, Ste 103 512 E. Township Line Rd. Blue Bell, PA 19422 Phone: (215) ENTRUST

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