Non-Recourse & SDIRA Loans
Secured by the property itself, not the borrower personally.
Who Its Best For?
- Investors purchasing or refinancing real estate through Self-Directed IRAs.
- Clients seeking asset protection and limited liability.
- Entities such as LLCs or trusts investing in real estate.
- Long-term investors building wealth inside tax-advantaged structures.
What It Does
Non-recourse loans are secured solely by the property, meaning the borrower is not personally liable for repayment. When paired with an SDIRA, they allow investors to use retirement funds to acquire or refinance real estate without triggering tax penalties or losing tax-advantaged status.
Why It Matters
Traditional loans require personal guarantees, exposing personal assets to risk. Non-recourse loans protect your personal balance sheet and allow you to leverage retirement capital for real estate investments. Income and appreciation remain tax-deferred or tax-free, and liability stays limited to the property itself. The benefits include:
- Asset protection with no personal guarantee.
- Tax-advantaged growth inside retirement accounts.
- Diversification beyond traditional investments.
- Increased purchasing power through leverage.
Key Benefits
- Loan amounts from $75,000 to $50 million.
- No personal liability.
- Property performance determines qualification.
- Compatible with SDIRA, LLC, or trust ownership.
- Tax-deferred or tax-free growth potential.
Example Scenario
An investor had $1.2 million in a Self-Directed IRA and wanted to buy a 12-unit multifamily property valued at $2.8 million. We structured a non-recourse loan secured solely by the property, allowing them to use retirement funds for the down payment. The property generated $14,000 per month inside the SDIRA, growing tax-deferred and without personal liability.
FAQ
What is a non-recourse loan?
A loan secured only by the property, not the borrower.
Can I use an SDIRA to buy real estate?
Yes. This structure allows you to invest retirement funds without penalties.
Is personal credit considered?
No. Qualification is based on the property’s income and value.
Can entities like LLCs use non-recourse loans?
Yes. These loans work well with entity ownership structures.
Can I refinance existing properties?
Yes. As long as the loan remains non-recourse.
Explore other programs
Short-term financing to buy, renovate, and sell or hold properties for profit.
