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altmud t1_j293gkg wrote

Yes, there are IRA custodians that will allow you create a self-directed IRA that lets you invest in almost anything that is legal for an IRA to invest in (real estate, private equity, private stock, unregistered/private REITs, private notes, etc.). One of the more well-known is "Pacific Premier Trust", but there are many competitors for you to compare and consider.

In my experience such IRA custodians charge much higher fees than "ordinary" IRA custodians, and certainly way more than discount brokerages like Vanguard, Fidelity, etc. That is just the nature of the beast. If you're going to do this, you will have to accept the higher fees as part of it. There will likely be ongoing quarterly and/or annual maintenance fees, and pretty much any action you take in the IRA, including buying the notes you're talking about, will require paying a substantial fee for them to handle the paperwork.

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brick1972 t1_j28mavf wrote

Commenting for two reasons, neither of which answer your question sorry

  1. I want to see what others say

  2. Frankly this post throws a lot of red flags that this is a scam or pyramid or similar - but you don't have to convince me otherwise. I just hope you've done your diligence.

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EschewObfuscation21 t1_j28ukyk wrote

No, pretty confident it’s not a scam. Private placements of notes like this that have not been registered under the securities laws and only available to accredited investors happen all the time. My investment would be protected by a lien against the property that would only be subordinate to the mortgage. Appreciate the thoughts though.

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ThrillaMilla32 t1_j2bfln9 wrote

I thought the same time too!

Give a taste of the returns (Bait), but it's a better return over in this deal (hook). Then the broker lives the life and pays you back with the next guy's money.

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kveggie1 t1_j28rnoi wrote

I wondering how liquid your investment is. Who do you sell it to when you want out or need cash for a large purchase. what if the "onco" wants to sell all? what if the "onco" dies, who is his successor.

so much risk and you have no control.

I would never do that. I suggest to sell and just by REIT mutual funds from Vanguard.

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EschewObfuscation21 t1_j28vnhy wrote

You are correct. It is not liquid, the same way that my membership in the LLC that owns the rental property I mentioned is not liquid. It does have a date certain though — 5 years — for the investment to be complete (return of investment plus all recurring interest payments along the way, as with other similar loans [although this raises early repayment risk—that the loan will be repaid early before I’ve gotten a chance to get my five years of interest payments—but that’s not really an issue for this discussion, is addressed by the agreements, and is similar to the risk mortgage lenders take that any given borrower may repay their 30 year mortgage well before the bank gets 30 years worth of interest payments and still involves getting your initial investment returned in full]). Although I’m not an expert, I am a lawyer and the agreements/prospectuses are extremely professionally done and I’ve had a transactional lawyer friend who specializes in complex real estate transactions take a look and he said he’s worked on a number of similar deals and it’s kosher, from a legal standpoint. The amount of the investment would represent quite a small party of my total portfolio so if not having access to $10-$15k for a period of five years is what does me in financially then that’s the least of my problems because that basically means the entire stock market has collapsed among other things (and if I did this through an IRA as outlined above then I wouldn’t be able to access the funds until I’m 59 just like any other retirement account anyway, unless you’re talking early withdrawals and a 10% penalty which I think is something no one ever wants to do if they can avoid it). Finally I don’t think that a Vanguard REIT is going to get me anywhere near an 11-13% return over five years (maybe I’m wrong?) so not quite the same investment opportunity. I recognize this is a very “alternative” investment (which of course doesn’t de facto make it bad), and was really just curious about folks’ experiences with similar investments, as opposed to a critique on the wisdom of making such an investment in the first place.

Anyway, all that said, I appreciate your thoughts!

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