Investment Options

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Notes & Mortgages

The Entrust Group does not offer investment, tax, financial or legal advice to clients. Individuals who believe they need advice should consult with the appropriate professional(s) licensed in that area.

Self-Directed IRAs:  Invest in Notes and Mortgages

A note is a vehicle that is used to extend credit from one or more individuals or entities to another individual or individual’s entity.

There are two types of notes:

• Secured notes are backed by collateral, providing the lender increased assurance of return of the loan amount and interest, such as mortgages and deeds of trust.
  
• Unsecured notes are not backed by collateral. You might consider an unsecured note for perhaps a friend or a non-disqualified relative, but it is a higher risk—and sometimes reward—than a secured note.
  

Investing in Trust Deeds and Mortgage Notes with a Self-Directed IRA

To clear up confusion a trust deed, deeds of trust, and mortgage notes are largely the same investment, depending on the state that you reside in. Your Entrust self-directed IRA or real estate IRA may invest in trust deeds, mortgage notes, and deeds of trust and other interest-bearing notes.

These notes may be either in first or subordinate positions and may be purchased from brokers or private parties. Usually, the documentation is recorded at county recorder's offices, and title to the property is insured as instructed.

You may also purchase or sell portions of mortgages. In such cases, your retirement account holds an undivided interest in that portion of the note and receives the proportionate amount of income due under its terms. In addition, you may purchase discounted notes as well as real estate purchase options.

You will need to complete either a Buy or Sell Direction Letter to properly complete the transaction. It is important that you follow the guidelines provided on these forms to avoid any unnecessary delays and costs.

As with all real estate purchases, these retirement investments entail specific requirements that are critical to the smooth completion of the transaction. To find out more about these types of transactions, visit the Entrust Learning Center.

Title and Escrow Companies and Your Self-Directed Retirement Plan

When title and or escrow companies are involved, proper instructions are provided to them for all documents for your retirement plan. In the event that a local title or escrow company has additional requirements other than those provided in our comprehensive package, delays and additional costs may result.

If a self-directed individual retirement account is for you, why not go with the best. Entrust offers you:

• Local service. Entrust is the only self-directed IRA administrator with a nationwide network of offices across the United States.
• First-hand, expert knowledge. Entrust taps into the wealth of experience of our local experts to bring you information in an easy to understand format.
• Simple processes. Since we do this everyday, we have simplified our processes so that you can quickly and easily take care of your transactions.
  

Getting started is easy. Contact an Entrust professional in one of our local offices to establish a self-directed IRA or real estate IRA or open your account today.