Investing for retirement is something that everyone should do, but many people don’t. In fact, almost 30% of Americans do not think that they will be able to retire comfortably because they will not have enough money. If you would prefer to retire before the age of 80 (or ever), you might want to consider starting an IRA and investing with it. A popular option for doing this is the use of IRA non recourse loans to invest in real estate. Does that sounds like gibberish to you? Here is some terminology to get you started.

IRA
An IRA is an Individual Retirement Account. You can set up an IRA at a number of different financial institutions to save for retirement. The IRA allows your savings to generate interest tax free. A self directed IRA allows the owner to invest those funds any way he or she sees fit.

Nonrecourse loans
A nonrecouse loan is a is a secured loan, which means that the borrower pledges some real property to the lender as collateral. A non recourse loan agreement is typically that the borrower secures the loan with some type of property, and the non recourse lender can only seize that property and nothing more in the event that the borrower defaults on the loan.

Loan to ratio value
A loan to ratio value refers to the ratio of the value of the loan to the value of the asset purchased with the loan. Non recourse debt is usually limited to 50% to 60% of the loan to ratio value.

Income property
Income property refers to physical property assets that can be used to generate income for the owner. Typically, the term applies to multi-family housing, apartments, agricultural land with a lease contract, or commercial property.

An IRA non recourse loan combines all of these terms together to create an investment opportunity for those looking to boost their retirement savings. Non recourse IRA loans are the only way to use your IRA to invest in real estate, so keep that in mind if it sounds like something you want to do. To see more, read this: myiralender.com