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Mortgage Investments
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Tax exempt investing

Mortgage investments can be made from a self-directed IRA.

Self-directed IRAs
With qualified plans, like the common 401(k) you can only invest in securities. With a self-directed IRA, your investment options are almost limitless, witness the fact that the IRS does not publish a listing of allowed investments, only prohibited transactions.

To be able to make any kind of self-directed investment you need an IRA (Individual Retirement Account) with a self-directed IRA custodian, through an industry leader like Equity Trust.  

The best option is a self-directed IRA Plan with "checkbook control", offered through an industry leader like IRA Financial Group, which includes attorney support the low annual service fee. IRA plans with checkbook control are easier to manage (no bureaucracies), and the annual cost is much lower (no transaction, processing fees). The setup expense is $1,000-$2,000, but well worth it. Highly recommended for $50,000+ IRAs!

Traditional IRA and the Roth IRA
Many investors use self-directed IRAs to invest. From a tax planning point of view you have two choices:

  • Traditional IRA: The contributions are tax-deductible, but the eventual distributions are taxable.
    Say you invest $100,000 over time, you will get $100,000 in tax deductions. If the IRA is worth $200,000 when you retire, you will pay tax over the $200,000 as you take the funds out.

  • Roth IRA: The contributions are not tax-deductible, but the eventual distributions are tax free.
    Say you invest $100,000 over time, you will get NO TAX DEDUCTIONS. If the IRA is worth $200,000 when you retire, you will pay NO TAX over the $200,000 as you take the funds out.



LX investments and IRAs

The minimum participation in many of our investments is $10,000. This allows you to suit investment amounts to fit the available balance. Many LX investors use IRAs. We are familiar with the practicalities. Reach out if you have any questions.