Pro Tip: Open and fund a Self-directed Roth IRA, then make hard money loans out of it to local investors. It's a great way to get in the game with money you otherwise couldn't deploy in real estate without messy taxation issues.
I like this strategy a lot but there’s one thing that worries me about it: inflation. What’s the best way to counter it? Making the interest rate adjustable?
-
-
12 month balloons with 1 year of duration. Like a zero coupon.
-
Wait, what? How borrows money on such short time horizons in RE and then how can you collateralize such short term presumably small loans on good assets?
- 2 more replies
New conversation -
-
-
These are short term loans and being in the IRA they are not taxed.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Some of our lenders do 12 months balloons with interest only some do 6. Interest is typically 8-9%, with 3 points.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.