Jerry structured a loan with his IRA.
How did the process begin?
Jerry was looking for a way to diversify his retirement savings when he came across an investor who was raising money to build a new local craft brewery.
What made self direction interesting?
Having worked in a similar industry for most of his career and being passionate about craft beers, Jerry was able to determine that this was a viable business opportunity with potential for growth. Plus he was excited to support small local businesses like this in his personal neighborhood. After watching a webinar on the NDTCO website, Jerry learned that he could “lend” money from his self-directed IRA to the brewery investor.
Why New Direction Trust Company?
Jerry felt supported and empowered by the NDTCO education tools every step of the way. Simply lending money from his IRA was one thing. But NDTCO also helped him learn how to structure the loan, including how the brewery investor would make principal and interest payments according to terms they negotiated amongst themselves, such as interest rate, duration of the loan, and security interest ($60,000 initial loan, with $2.5k in monthly payments, plus 3.5% interest).
What were the results?
The deal was profitable for both parties, as Jerry was able to invest in a project he was passionate about, knowing that his funds were being put to good use, while the investor was able to raise funds at a rate more beneficial to him than going through a traditional bank.