Retirement Investment Alternatives

Investing in Real Estate

Using funds from your IRA Self-Directed Account to buy or sell real estate and/or secured notes is a simple method to earn high yields, accumulating without tax consequences. IRS restrictions must be STRICTLY followed to maintain tax deferred status.

Real Estate
Your Self-Directed IRA Account may purchase and sell real estate at your sole discretion.

Real Estate Secured Notes
Your Self-Directed IRA account may invest in interest bearing notes secured by real estate.

Prohibited Transactions
Your IRA MAY NOT purchase or have a mortgage on property in which your children, grandchildren, parents, or grandparents have an interest.

Your IRA MAY own and/or hold notes on property occupied by siblings or friends.

Property which your IRA owns or has a mortgage MAY NOT be used by you or your business.

Purchasing Real Estate and/or Notes
When you have determined that you want your IRA to purchase a particular piece of property or lend money (or purchase an existing note), you contact Retirement Investment Alternatives (RIA) with a Direction Letter describing the property and the terms of the purchase or loan (or note you desire to purchase).

When purchasing or lending money, RIA, through it's affiliates, can conduct the required title search and direct tpreparation of the closing documents and/or note to assure they are properly prepared; or, RIA will work with professionals of your choosing.

If purchasing real property or an existing note, RIA will make the purchase for the benefit or your account.

RIA can prepare an amortization schedule and collect payments due, per the terms of the note, for the benefit of your account.

All monies collected will be deposited with your federally approved account custodian who is normally a bank or Trust Company. Statements will reflect all payments received, interest earned, and principal reductions.

You may NOT receive fees for servicing your own mortgage account unless your normal business includes mortgage servicing.

If default should occur, RIA will notify you to determine the course of action. RIA can initiate foreclosure and work with legal professionals in each stage of the proceedings. Cost of Foreclosure is borne by the account.

Affiliated Services
RIA, through its affiliated companies, has the ability to conduct title searches, maintain accounts, or perform all legal services to assure your transactions are correctly handled in accordance with IRS requirements.
Our affiliates include:
Peninsula Title Services, LLC
Peninsula Exchange Services, LLC
Timothy L Haring, Attorney at Law

Custody of Deeds and Notes
Deeds, notes and mortgages will be recorded in the Register of Deeds office and the original documents held by RIA as your account representative.

Regulatory Reporting
RIA will direct the preparation of all annual regulatory reporting of account value and/or interest income on form 1098, as well as other annual reports that may be required by the IRS.

Servicing Fees
Servicing as described herein is part of our normal support to our customers. A nominal fee is charged for receiving and depositing collections, computing amortization schedules, and preparing annual forms. Please refer to our fee schedule, which is available upon request.