Promissory note assets are written agreements in which a borrower agrees to repay a lender according to established terms. A self-directed IRA may hold certain promissory notes, which may be secured by real estate or other collateral, or may be 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.

The loan terms, including the repayment schedule and interest rate, are established between the parties and documented in the loan agreement.

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