Case StudySelf-Directed 401K as Borrower Taking Out Private Money Loan
Loan Amount: $150,000
Loan-To-Value: 67% LTV
Term: 5 Years
Situation & Challenge
An active investor acquiring a discounted property wanted to use their Self-Directed 401K as the borrower and wanted to know if First Capital Trust Deeds could facilitate that request.
This couldn’t be done with a conventional lender since they require the borrower to be a person rather than an entity, so it had to go through a private money lender.
Solution & Result
First Capital Trust Deeds secured very attractive private money financing at 6.25% on a 5-year term, making the Self-Directed 401K the borrowing entity with the real estate investor the guarantor.
The acquisition closed within 18 days of application on what we admit was some very attractive terms.