A promissory note is a written agreement in which a borrower promises to repay a lender according to established terms. A self-directed IRA may hold eligible promissory notes, which can be secured by collateral or unsecured.

When real estate is used as collateral, the loan may be secured by a deed of trust or mortgage, depending on the transaction and applicable state law.

Loan terms, including the principal amount, interest rate, repayment schedule, and collateral requirements, are established between the parties and documented in the loan agreement.

Mountain West IRA provides administrative and recordkeeping services for eligible promissory note and trust deed assets but does not select, recommend, endorse, or evaluate these assets.