What documentation must I submit to lend money from my IRA to a third party?

Once you have identified the third party you would like your IRA to lend to, you will need to submit a completed and executed Buy Direction Letter – Secured or Unsecured Note. A Vantage Investment Specialist will then provide you with a list of additional documents that will need to be received in good order to process the private loan transaction. Vantage clients should title the lender on the note and all other supporting documents as follows: Vantage FBO (Client’s Name) IRA.

What fees are associated with lending money from my IRA?

There is a $125 transaction fee to lend your funds from your IRA regardless of the value of the note. A detailed overview of all account fees can be found in the Fee Schedule.

What documents must be submitted for my IRA to purchase a note secured by a Deed of Trust?

Vantage will need the original promissory note and Deed of Trust. In the case where you are using a loan servicer, Vantage will only need a copy of the promissory note and Deed of Trust.

Can my IRA funds be used to lend money to me personally?

No, this would be considered a “self-dealing” prohibited transaction. The Internal Revenue Code Section 4975 provides a list of “disqualified parties” and “related parties” to your IRA, and unfortunately, account holders are considered related to their own IRAs.

Does Vantage need the original Promissory Note?

Yes, we require the original note signed by the client and the borrower.

How should the ownership of my IRA be titled on the promissory note?

All language within the promissory note documentation that references the “lender” should be vesting in the name of the IRA as follows: Vantage FBO (client name) IRA

How should I instruct the borrower to make payments to the promissory note?

All payments being made by the borrower of the note to the IRA should be made payable and addressed as follows:
Vantage FBO (client name) IRA
8742 E Via de Commercio, Scottsdale, Arizona 85258
Should you desire to have the borrower make payments into your IRA via an ACH or wire, please contact us and we can provide you with instructions on how to set that up for your IRA.

Does Vantage contact the borrower to collect my IRAs note payments? Will Vantage notify me if payment is not received from the borrower?

No, Vantage is not a Servicing Agent and as such, is not responsible for ensuring timely payments are being made on the notes held within the IRA account.

If I hold notes in my IRA, am I still required to complete the annual Fair Market Valuation?

Fair Market Valuations are not required for Unsecured Notes or Deeds of Trust unless you are reporting a pay down or are in a year of Required Minimum Distribution (RMD).