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for protecting your private mortgage investments “BELT & SUSPENDER METHOD”

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Use your SDIRA to make a loan

Require the loan to be secured by a mortgage on real estate

Require title insurance to be issued to insure your lien priority position

The trustee will sign the note and mortgage and act as trustee of the trust

Lend to a Land Trustee of a Florida statutory land trust (the suspenders)

A mortgage will be recorded as a lien against the real estate (the belt)

Meanwhile, inside the trust:

Your IRA will be the primary beneficiary

The borrower will be the secondary beneficiary

If the second beneficiary/borrower defaults you, your IRA, as primary beneficiary, directs the trustee to convey the property to the lender-IRA

If the secondary beneficiary/borrower objects or tries to stop the trustee from taking that action, then the IRA can foreclose the mortgage on the property

The primary beneficiary will direct the land trustee to not defend the foreclosure, keeping the foreclosure streamlined

A mortgage foreclosure can also be used to wipe off junior lienholders who make unreasonable demands (i.e.. construction liens or subsequent purchasers, trying to tie up the property)

W W W. S E A G L E L A W. C O M

(407) 770-0100

Questions?