Loans For IRA Properties: Long Term Rental and Fix and Flip

At Ternus Lending, we understand the unique challenges and opportunities that come with financing real estate investments through an Individual Retirement Account (IRA). Traditional lenders often limit IRA-related loans to about 50% loan-to-value (LTV), which can significantly restrict your investment potential. We’re excited to announce a breakthrough in IRA financing that can change the game for many investors: now, you can leverage up to 75% LTV on your real estate investments, matching the financing opportunities available to other business entities.

Tailored Loan Programs for IRAs

Our innovative loan programs cater specifically to real estate investors using IRAs to fund their investments. Here’s how it works:

1. Credit Review of the Primary Account Holder: Even though an IRA typically does not allow personal guarantees on loans, we approach this differently. We assess the credit of the IRA’s primary account holder as if they could personally guarantee the loan. This allows us to extend more favorable loan terms that are usually available only to personal or business entity loans.
2. Two Flexible Loan Options:
   • Limited Recourse Loans (Up to 75% LTV): For investors willing to accept limited recourse—with what’s known as a “bad boy carve-out”—we can offer up to 75% LTV. This is ideal for both fix-and-flip and long-term rental loans.
   • Full Non-Recourse Loans (Up to 65% LTV): If you prefer a loan without any personal liability, we offer full non-recourse loans at up to 65% LTV, providing more leverage than typically offered by other lenders for IRA investments.

What is a “Bad Boy Carve-Out”?

A “bad boy carve-out” is a clause in limited recourse loans that provides conditions under which the borrower would be personally liable if certain misconduct occurs. These “bad acts” typically include fraud, misrepresentation, or other egregious acts that harm the lender. Essentially, as long as the borrower acts in good faith and adheres to the terms of the loan, they will not face personal liability beyond the collateral itself.

Why Choose Ternus Lending for Your IRA Real Estate Investments?

• Increased Leverage: With the ability to finance up to 75% LTV, you can now undertake larger projects or make more substantial investments than typically possible with IRA funds.
• Flexible Terms: Our two-tiered loan options cater to different risk tolerances and investment strategies, allowing you to choose the best fit for your financial goals.
• Market Competitive Rates: Despite the specialized nature of these loans, our rates remain competitive with those available to traditional business entities.

Ready to Expand Your Investment Portfolio?

If you hold an IRA and are looking for financing to either start or expand your real estate investments, Ternus Lending has tailored solutions that can enhance your buying power and investment reach. Our team is dedicated to providing innovative financing solutions that help you maximize your IRA’s potential in the real estate market.

Contact us today to learn more about how our IRA-compatible real estate loans can provide you with the leverage you need to grow your investments and secure your financial future. Let Ternus Lending help you turn your investment dreams into reality!