• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
NoteInvestor.com Logo with House next to words

Note Investor

How to buy, sell, broker or invest in private mortgage notes for cash flow!

Your Trusted Source For
Note Investing Information!

  • Home
  • About
  • Articles
    • Notes 101
    • Note Brokers
    • Note Buyers
    • Real Deals
    • Seller’s Corner
    • Cash Flow Business
  • Learn
    • Sell Your Mortgage Note
    • Note Broker Training
    • How To Buy Notes
    • Note Buyers Directory
    • Creating Notes With Seller Financing
    • Note Investing 101 Series Videos
    • Note Industry Conventions
  • Bookstore
  • Contact
  • Sell Your Note

Real Deal #148 – Seller Financing for IRA Investments!

November 19, 2008 by Tracy Z Leave a Comment

Welcome to Real Deals!  It’s always easier to learn from real life so here we share information from actual owner financed transactions. It can be challenging to obtain non-recourse loans necessary to finance the purchase of real estate in an IRA, 401(k), or other type of self-directed retirement account.  Seller financing can be a viable alternative financing solution.

The seller owned several small condo units in TX listed for sale at $64,650 each.  The properties generated rental income that exceeded expenses and debt coverage.  The positive cash flow made the units attractive to a local real estate investor that viewed the real estate listing.

The experienced landlord desired to purchase several units as an investment in his Individual Retirement Account (IRA).  By making the investment in his IRA all income and profits could be tax deferred with a Traditional IRA or even tax free with a ROTH IRA.  The IRA was facilitated by a custodian, which allows self-direction of funds. All income and all expenses were deposited or paid through the IRA account to preserve the tax-advantaged status.

The seller and buyer agreed to a sales price of $64,650 with a down payment of $12,930.00 at closing.  The seller carried back the balance of $51,720 in an owner-financed note, deed of trust, and warranty deed with vendor’s lien.  The interest rate was 11% per annum with payments of $492.54 per month for a 30-year term.

The seller collected one payment and sold the 359 remaining payments to a note investor for a purchase price of $45,850.00.  The buyer and seller facilitated two sales with duplicate terms through the same type of temporary owner financing with payments sold to an investor.

Real deals are based on actual transactions completed within the past ten years. Market conditions change frequently resulting in pricing and underwriting changes by note investors.  Work with qualified professionals when creating new notes to obtain accurate and up-to-date pricing and investment parameters.

Filed Under: Real Deals Tagged With: Do it yourself notes, Note Seller Real Deals, notes in IRA, Owner financed real deal, Self directed retirement account, Sell Note, sell note payments, seller financing for IRA investments, tax free investing, Temporary seller financing

About Tracy Z

Tracy combines her knowledge of real estate notes with the power of marketing online to help grow your business! She can be reached at Tracy@NoteInvestor.com or by calling 1-888-999-7905.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Learn Real Estate Notes

Click the reports below to download your FREE copy of 5 Ways to Cash in on Notes AND a BONUS!
Diversified Investment Services Inc BBB Business Review

Search This Site

More to See

Investing Notes Risk

21 Tips To Read Before You Get Started Investing in Notes

Selling Mortgage Notes? Find the Right Note Buyer!

Learn Note Business

Learn the Note Business in 60 Seconds?

Cash Flow Notes Business Truth

5 Myths About the Cash Flow Notes Business

Most Read Note Buying Info

How To Buy Mortgage Notes
Creating Notes With Seller Financing
Note Broker Training
Get Direct With Note Buyers Directory
How Can I Find Cash Flow Notes?
Buying and Selling Notes For Residual Income
How Dodd Frank Mortgage Laws Apply to Seller Financing
How To Calculate Cash Flow Notes
Note Investing 101 Series Videos
Best of Notes 2024

Connect With Us

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Footer

Places to Visit

  • Creating Notes
  • How To Buy Notes
  • Note Broker Training
  • Note Buyers Directory
  • Sell Your Note
  • Bookstore

We Are Here to Help

Photo of Fred Rewey and Tracy Z of NoteInvestor.com
Fred Rewey & Tracy Z NoteInvestor.com

Receive the Note Investor Newsletter

COPYRIGHT © 2008-2025 NOTE INVESTOR | PRIVACY POLICY | CONTACT US
This website is for informational purposes. This is not an offer to sell or purchase any security. Nothing is intended as legal, financial or investment advice. Any historical data represents past performance and does not guarantee future results. NoteInvestor.com is owned by Diversified Investment Services, Inc.