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The Go-To Lender for Investors Looking to Leverage Self-Directed IRAs
UNLOCK YOUR REAL ESTATE POTENTIAL WITH SELF-DIRECTED IRA LOANS
Whether you’re planning to buy, fix, sell, or acquire and manage properties as long-term rentals, our loan programs are designed to help you grow your real estate portfolio while maintaining the tax-deferred advantages of a Self-Directed IRA.
We’ve partnered with a trusted provider to streamline the loan process for self-directed IRA scenarios, ensuring a smooth and e icient experience for our clients.
What Options Are Available?*
| Limited Recourse | Non-Recourse |
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RCN Capital requires borrowers to provide a limited recourse guaranty which only applies in the event the borrower commits specific "bad boy" acts including but not limited to filing a voluntary bankruptcy, engaging in fraud, criminal acts, etc. Please consult an attorney to review the limited recourse guaranty. |
No personal guaranty is required. In the event of default, RCN Capital is only able to pursue the collateral property for repayment. |
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Changes to Existing Program Terms: |
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No Changes to Existing Program Leverages! |
Available at a 10% Leverage Reduction; |
Documents Required for Borrower Entity Review
IF BORROWER IS THE 401K/SELF DIRECTED IRA:
- Copy of signed Application (from borrower directly) OR Account Confirmation Letter (from 401K/IRA directly).
- Copy of the Plan/Custodial Agreement
- EIN (from borrower directly)
- Real Estate Direction of Investment (DOI) Form
- Asset Purchase Letter (from 401K/IRA directly)
- Investment Title Guide (or other document showing how title should be taken/loan documents signed)
- Copy on file for Equity Trust Company
- Resolution by Corporation Conferring General Signing Authority of Officers and Corporate Alternative Signers
- Copy on file for Equity Trust Company dated August 7, 2023
IF BORROWER IS A LIMITED LIABILITY COMPANY (LLC) OWNED BY A 401K/SELF DIRECTED IRA:
LLC DOCUMENTS (LLC MUST BE IN GOOD STANDING):
- Articles of Organization (and any amendments thereto).
- Operating Agreement (original and any amendments thereto).
- Any Bills of Sale/Documents Evidencing Transfer of Membership Interest.
- In the alternative, Affidavit of Sale of Ownership Interest.
- EIN and/or Executed W9.
- Certificate of Good Standing (if not formed within the last year).
- Resolution to Enter into Transaction (if more than one member – to be provided by Lender).
- NOTE: Manager must be the owner of the 401K/IRA (except for Equity Trust OR upon receipt of a letter from 401K/IRA confirming IRA is invested in the LLC and manager is proper).
- NOTE: 401K/IRA must be the sole member (except for Equity Trust OR upon receipt of a letter from 401K/IRA confirming IRA is invested in the LLC and percentage ownership is proper).
401K/SELF DIRECTED IRA DOCUMENTS:
Copy of signed Application (from borrower directly) OR Account Confirmation Letter (from 401K/IRA directly).
- Copy of the Plan/Custodial Agreement
- Direction of Investment Form/Private Equity Buy Direction of Investment (DOI) Form OR Letter Confirming IRA is Invested in the LLC (from the 401K/IRA directly).
- Investment Title Guide (or other document showing how member/owner name should be set forth in entity documents and on loan documents)
- Copy on file for Equity Trust Company
- If Operating Agreement was/is required to be signed by the 401K or the IRA - Resolution by Corporation Conferring General Signing Authority of Officers and Corporate Alternative Signers
- Copy on file for Equity Trust Company dated August 7, 2023
PROCESS REQUIRED FOR EQUITY TRUST:
- Prior to closing - Closer to send loan documents and HUD to the custodian for approval.
- Depending on title requirements, the Custodian may be required to sign the recordable documents.