Call: 800-908-8845 CONTACT US APPLY NOW HOME IRA NON-RECOURSE LOANS CRP PAYMENTS RESOURCES ABOUT CONTACT Purchasing Rental Property With a Non-Recourse Loan There are more renters now in the US than at any other time since 1965. This trend is predicted to continue growing. Get ahead of the market trends by applying for a non-recourse loan with First Western Federal Savings Bank, and grow your investment portfolio with a rental property. Contact us to begin. Get Started Contact Us Today Do not fill this form out if you're a solicitor. Name First Last Email Phone Questions or Comments* CAPTCHA WHAT IS A NON-RECOURSE LOAN? In a 2017 news clip from CNBC, they reported that there are more renters now than at any other time since 1965 in the United States. Demand for rental property across the nation is high, and market data suggests this trend will only continue to grow. This creates a significant avenue for investors to grow wealth and experience financial success by investing in real estate. Imagine using your retirement account as the vehicle to purchase the investment property and realize the monthly income tax deferred or tax free. Bonus… the appreciation of the property over time will be treated the same if/when you decide to sell the property. There is no better time than now to get started on building a real estate portfolio in your self-directed IRA or solo 401(k) with a non-recourse loan. Loans present us with further opportunities in all aspects of life, and a non-recourse loan is no exception. With a non-recourse loan, you can use your self-directed IRA to buy real estate, specifically for the purpose of using it as a rental property. This creates a whole new array of financial possibilities, all of which can add tremendous value to your retirement assets and your investment portfolio as a whole. There are a few simple steps to take and some criteria to fulfill, but investing your self-directed IRA in tandem with a non-recourse loan can be an excellent financial decision. Take a look at how purchasing investment property with a non-recourse loan works, as well as how it makes a difference. When you’re ready to take the first steps towards getting a non-recourse loan, First Western Federal Savings Bank is here for you. HERE IS HOW IT WORKS There are many reasons to purchase investment property and considering using a non-recourse loan from First Western Federal Savings Bank to purchase or refinance is a smart move. Our team works diligently to ensure the property you purchase is good for you & your Retirement Account. Watch our video to learn more! ENROLL Enroll in a self-directed IRA or solo 401(k). This retirement account allows you alternative investment options for your savings, such as investing in real estate. SAVE Enroll in a self-directed IRA or solo 401(k). This retirement account allows you alternative investment options for your savings, such as investing in real estate. EXECUTE Enroll in a self-directed IRA or solo 401(k). This retirement account allows you alternative investment options for your savings, such as investing in real estate. APPLY Enroll in a self-directed IRA or solo 401(k). This retirement account allows you alternative investment options for your savings, such as investing in real estate. APPLY TODAY WHY BUY AN INVESTMENT PROPERTY? With a non-recourse loan and your self-directed IRA or solo 401(k), you have the potential to buy investment property for the purpose of creating rental income. The benefits of holding real estate in your retirement account are countless, and using a non-recourse loan from First Western Federal Savings bank can bring those benefits to you sooner than using all cash. See some of the ways in which owning investment property purchased using a non-recourse loan can add significant value to your self-directed retirement account: Additional Source of Income This is perhaps one of the most well-known advantages of owning rental property. While the upfront costs of purchasing investment property are substantial, a non-recourse loan is a tremendous tool to help your self-directed retirement account acquire properties and the financial benefits are impressive. For example, a 3-bedroom house in many cities rents for $1,500 per month (and certain areas demand even higher rents) adding $18,000 a year to your income. Done inside your retirement account, this income grows tax-deferred or tax-free until you draw the income out during your retirement years. Regardless of the property’s location, the potential for added income is huge! Flexibility Similar to reasons people choose to become entrepreneurs, owning investment property provides an additional source of income, but with even greater flexibility. While you do need to respond to tenant’s needs as they arise, done properly, investment property should “make money while you sleep.” Obviously, a property that’s highly functioning will need occasional maintenance, but other than routine checks and fixes, there is no day-to-day commitment. Considering the potential income and its duration, this is a great way to add to your financial future with minimal time constraints. START TODAY! Long-Term Value Real estate is a great asset to have in your retirement account. Aside from the monthly income it generates, real estate usually appreciates over time. What’s more, you can actually leverage real-estate with a non-recourse loan to accelerate the return on investment. Many successful investors will repeat this accumulating greater cash flows and wealth each time they put leverage on an investment property. Again, this done inside a self-directed IRA or solo 401(k) means these greater returns on your investment go back into the account tax-deferred or tax-free. Incredible! Apply Now! Contact Our Lenders Using Your Self-Directed IRA One of the single greatest financial decisions you can make is planning for your retirement and overall financial future. Whether you’re 22 or 62, the time will come when you will no longer be working. While that time may be somewhere in the future, the time to make wise financial decisions is now. Your self-directed IRA can help with that, but it leads many people to question: what are the benefits of using my IRA to invest in real estate? Learn More About IRA Loans & CRP Payments Get Started Think back to the added income benefit of using a non-recourse loan for investment property and the potential it creates to invest your retirement funds. You can combine your current funds with a non-recourse loan to purchase an income producing property in which the income produced repays the loan and cash flows positive back into your self-directed IRA or solo 401(k). Investment property is an asset that grows in value while providing a steady income stream, further growing your retirement funds. Considering CNBC reports that the median retirement savings of families between the ages of 32 and 37 is just $480 (2) and one in three people in the United States has not put anything into retirement savings (3) and over half of the American populations has less than $10,000 saved for retirement, the status-quo is not good. Understandably, many people have necessary priorities over retirement savings, but for most Americans, the first step just hasn’t been taken. For those who have begun saving for retirement, congratulations! Adding a self-directed IRA to your portfolio is a great step for your retirement planning if you are interested in real estate as an investment. Additionally adding a non-recourse loan to an investment property has tremendous benefits. If you were to just let your self-directed IRA rest, you might accrue some interest. Many people employ traditional investment vehicles like stocks, bonds, and mutual funds in their retirement account, which carry more risk, but offer more reward for that risk. However, real estate is also an option for growing your retirement funds. Investors more and more are preferring the security of real estate over the volatility of the equity and bond markets. In addition to providing you revenue in real time, this will increase and grow in the years to come plus the value of property tends to appreciate over time. Using your self-directed IRA with a non-recourse loan from First Western Federal Savings Bank is the perfect way to grow your financial present and future. PROPERTY REQUIREMENTS The final piece in understanding how best to utilize your self-directed IRA and a non-recourse loan is knowing the requirements and limitations that come with owning investment property. This will not only help you pursue the right property for an investment, but will also help understand the requirements for a non-recourse loan. PROPERTIES THAT WORK The residential property options for using your self-directed IRA in correspondence with a non-recourse loan are vast. These include houses, townhomes, and certain condominiums. Properties also need to have their own roof, and be located in the United States. Additionally, the property value needs to be at least $70,000 in order to qualify for a non-recourse loan. With a list that’s as inclusive as it is vast, it’s easier to understand the types of properties that can’t be purchased with a non-recourse loan. Build Your Future Work with Our Non-Recourse Lenders Start Today PROPERTIES THAT DON'T WORK International Properties As mentioned previously, it’s good to reiterate that your potential real estate investment needs to be located in the United States. You cannot use a self-directed IRA and non-recourse loan to get a property outside of the country. Pre-1940s Homes The property you’re looking to purchase and turn into a rental needs to fit all of the aforementioned criteria, as well as be built after 1940. This is an important thing to check for as you consider properties, especially in older neighborhoods. Any homes or properties built before 1940 cannot qualify for the non-recourse loan. Properties Less Than $70k The property value of the real estate you're hoping to acquire must be at least $70,000 and you need enough in your self-directed IRA to put 40% down plus reserves. At the bare minimum, you need at least $40,000 in your self-directed IRA to pay with a non-recourse loan to buy investment property. Construction Loans Your self-directed IRA and non-recourse loan cannot be used for construction purposes. While you may do construction and renovations freely, you cannot take the funds granted from the non-recourse loan for these added costs. The non-recourse loan can only be used in correspondence with the purchase of the property. Row Homes A row home is a home that shares common exterior walls or is attached to an adjacent property by common walls. These homes are different from townhomes or condos in that the owner is responsible for all exterior maintenance and is not part of a Home or Condo Owners Association. Primary Property Oftentimes, a loan is taken out in order to establish a permanent place of residence. In the case of non-recourse loans, the property you take can solely be used for a rental. This means that you cannot be living in the home and/or call it a primary place of residence. Using your self-directed IRA to work towards a non-recourse loan is working towards an alternative form of investment—a primary form of residence is not included in these requirements. When you have a self-directed IRA, your chances for financial investment and growing your portfolio expand significantly with a non-recourse loan from First Western Federal Savings Bank. These components together make acquiring real estate for the purpose of rental property a reality, and one that grows your financial potential. So many doors are opened and so many opportunities are presented when you look to a non-recourse loan to secure a rental property. Through First Western Federal, you have the potential to secure and enhance your finances, not only tomorrow, but starting today. Contact the team at First Western Federal Savings Bank to get started, we’d be honored to work with you. CONTACT US FOR MORE INFORMATION Do not fill this form out if you're a solicitor. Name First Last Email Phone Questions or Comments* CAPTCHA SOURCES Summerville, Abigail. 2017. CNBC Elkins, Katherine. 2017. CNBC Kirkham, Elyssa. 2016. Time Recent Posts Tips for Getting Renters This Season Amid the COVID-19 pandemic, nearly every single industry has been affected and faced with the unique challenge of finding ways to overcome the obstacles that the pandemic and the stay at home orders are leaving behind. This is uncharted territory for everyone, which leaves the real estate industry specifically two options: adapt to the changes… Read More The Housing Market Now, and How it Could Change The Housing Market Now 2019 showed a shortage of inventory in the housing market, and the trend for 2020 may only intensify that, especially when paired with the lockdown that the U.S housing industry is on. Construction for new homes has been halted nearly entirely and real estate agents can’t show homes. Inspectors can’t inspect… Read More Why a Non-Recourse Loan is Necessary, Especially Right Now There are many beneficial ways you can save for retirement, and an IRA is one of them. An IRA, or Individual Retirement Account, is essentially a savings account with tax breaks. You are able to place your money in an IRA so you can invest it while saving for your retirement, and it’s typically something… Read More Email: Roger St. Pierre NMLS #768919 Email: Jeff Fullerton NMLS #768918 Email: Nick Conway NMLS #1606997 Disclaimer: First Western Federal Savings Bank is not affiliated with any of the listed custodians, administrators, or facilitators nor do we receive compensation to provide you with this information. We are also not responsible for the website content at third-party sites. First Western Federal Savings Bank and its employees do not provide tax, legal, or investment advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or investment advice. You should consult your own tax, legal, investment advisors before engaging in any transaction. 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