Private Lending and Hard Money Loans with a Self-Directed IRA or Solo 401K Artwork

Directed IRA Podcast

A show dedicated to educating and informing self-directed IRA and 401(k) investors on strategies, investments, legal structures, tax rules, and pitfalls. Hosted by tax lawyers Mat Sorensen and Mark Kohler who are also co-founders of Directed IRA & Directed Trust Company (https://directedira.com) where they have provided self-directed accounts for thousands of customers. They cover and discuss Roth IRAs, solo(k)s, prohibited transactions, real estate, start-ups, notes, PPMs, PE/VC Funds, UBIT/UDFI, IRA/LLCs (aka, checkbook IRAs), and share examples and stories from their thousands of clients who have self-directed their retirement for decades.

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Directed IRA Podcast

Private Lending and Hard Money Loans with a Self-Directed IRA or Solo 401K

May 19, 2025 • Mat Sorensen and Mark Kohler

To book a call with an IRA specialist!: https://directedira.com/appointment/

In this episode, Mat and Mark break down the powerful strategy of using a Self-Directed IRA for private money lending. Learn how your retirement account can act like a bank—lending money to real estate investors or businesses, earning interest and points, all while growing tax-free or tax-deferred.

0:00 - Introduction to Private Lending with a Self-Directed IRA
1:20 - What is a Self-Directed IRA and How It Works
3:00 - Retirement Accounts You Can Use for Private Lending
4:26 - Secured vs. Unsecured Loans – What the Bank Would Do
6:23 - Debunking Private Lending Myths and Managing Risk
9:25 - Key Legal Docs: Promissory Note, Deed of Trust, UCC Liens
11:48 - Should You Lend Through Your IRA or an LLC?
14:30 - Lending Criteria: Property, Borrower, and Strategy
18:00 - Common Mistakes in Private Lending and How to Avoid Them
21:46 - Understanding Loan Terms: Interest, Points, and Payment Structures
28:26 - Tax-Free and Tax-Deferred Growth in Your Retirement Account
34:06 - How to Find Private Lending Opportunities and Deal Flow
36:32 - Balancing Action vs. Analysis – Know Thyself as an Investor
37:59 - Final Thoughts and Legal Disclaimer

Directed IRA Homepage: https://directedira.com/

Directed IRA Explore (Linktree): https://linktr.ee/SelfDirectedIRA

Book a Call: https://directedira.com/appointment/

Other:
Mat Sorensen: https://matsorensen.com & https://linktr.ee/MatSorensen
KKOS: https://kkoslawyers.com
Main Street Business https://mainstreetbusiness.com