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Private Lending With a Self-Directed IRA

What is private lending in a self-directed IRA?

Yes, a self-directed IRA can lend money to others. Your IRA can make loans secured by real estate or other collateral to non-disqualified borrowers, and the principal and interest are paid directly back into the IRA. You set the loan amount, interest rate, term, and collateral.

Why investors choose this asset?

How Private Lending works in your Self-Directed IRA

How do I open a self-directed IRA for Private Lending?

To open a self-directed IRA, complete the online application for your account type, fund it by transfer, rollover, or contribution, then submit a Purchase Kit directing Mountain West IRA to buy the property on behalf of your IRA.

1.
Open your self-directed IRA — complete the online application (Traditional, Roth, SEP, SIMPLE, Individual 401(k), or HSA). Prefer to sign electronically? Email accounts@mwira.com or call (866) 377-3311 and we'll send your application for e-signature.
Traditional IRA Starter Kit
Roth IRA Starter Kit
SEP Starter Kit
SIMPLE IRA Starter Kit
Precious Metals Foreign Currency Starter Kit
Individual 401(k) Plan Starter Kit
Health Savings Account (HSA) Starter Kit
Traditional IRA Starter Kit
Roth IRA Starter Kit
SEP Starter Kit
SIMPLE IRA Starter Kit
Precious Metals Foreign Currency Starter Kit
Individual 401(k) Plan Starter Kit
Health Savings Account (HSA) Starter Kit
2.
Fund the account — transfer from another IRA, roll over a 401(k) or employer plan, or make an annual contribution.
3.
Direct your investment — complete a Purchase Kit (Direction of Investment) and sign your documents as “Read and Approved.” An Authorized Signer at Mountain West IRA then signs on behalf of your IRA and funds the transaction.
4.
Manage & grow — all income and expenses flow through your IRA, with online access and support.

Your IRA as the lender

The Private Lending IRA Guide covers how your IRA sets the loan amount, rate, term, and collateral, how the promissory note and security instrument name your IRA as lender, and what makes a loan arm's-length. Opening an account takes about 15 minutes when you're ready.

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Rules & What to Know in your Private Lending IRA

Why Mountain West IRA

Trusted since 2006: In business since 2006, serving 3,400+ clients with more than $1 billion in self- directed retirement assets under administration.
Administrator model: A self-directed IRA Administrator and record-keeper — passive and client-directed. Never a Custodian or advisor.
Fast processing: Efficient turnaround with an expedited option when you need to move quickly.
Real education: A deep library of guides, videos, and webinars, plus a Transfer & Rollover guide.
Personal service: A responsive, US-based team and one-on-one consultations.

Frequently Asked Questions

Can my self-directed IRA lend money to others?

Yes. Your self-directed IRA can make loans secured by real estate or other collateral, and the principal and interest are paid directly back into the IRA rather than to you personally.

Who can my self-directed IRA lend to?

Your IRA can lend to unrelated third parties, but not to you or other disqualified persons such as your spouse, parents, children, or entities you control. Doing so would be a prohibited transaction.

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See visual guides, behind-the-scenes content, and Real Estate highlights.
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Threads
Follow real-time conversations and quick takes on Real Estate trends.
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Blogs
Read expert articles and how-to guides on Real Estate for practical tips and insights.
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YouTube
Watch step-by-step video tutorials explaining Real Estate from start to finish.
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Facebook
Join our community for live updates, events, and Real Estate discussions.
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TikTok
Discover quick, easy-to-follow Real Estate tips in short-form videos.
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Instagram
See visual guides, behind-the-scenes content, and Real Estate highlights.
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Threads
Follow real-time conversations and quick takes on Real Estate trends.
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Mountain West IRA is a self-directed IRA Administrator and record-keeper and does not provide investment, tax, or legal advice. All information is general in nature. Investors should check with their own financial advisor, tax professional, or attorney about their exact situation before making any investment.