Mountain West IRA – Promissory Notes
Notes and Mortgages
A note is an investment vehicle that is used to extend credit from one or more individuals or entities to another individual or individual’s entity.
Investing in Trust Deeds and Mortgage Notes with a Mountain West Self-Directed IRA
To clear up confusion, trust deeds, deeds of trust, and mortgage notes are largely the same investment, depending on the state in which you reside. Your Mountain West self-directed IRA may invest in trust deeds, deeds of trust, mortgage notes, and other interest-bearing notes.
These notes may be either in first or subordinate positions and may be purchased from brokers or private parties. Usually, the documentation is recorded at the county recorder’s offices, and title to the property is insured as instructed.
You may also purchase or sell portions of mortgages. In such cases, your retirement account holds an undivided interest in that portion of the note and receives a proportionate amount of income due under its terms. In addition, you may purchase discounted notes.
To properly complete a note or mortgage transaction, you will need to complete a Direction of Investment Form – Promissory Notes or Sell Direction Letter. It is important to follow the guidelines provided on these forms to avoid any unnecessary delays and costs.
As with any alternative investment purchases, these retirement investments entail specific requirements that are critical to the smooth completion of the transaction. To find out more about these types of transactions, please contact our office.
To purchase a promissory note in your IRA, please complete and return the following items at least 2 business days prior to funding the investment:
2. If the promissory note is unsecured, please provide MWIRA with the original promissory note that clearly specifies your IRA as the “Lender”. If the note is secured, the original promissory note is not necessary, a copy will be sufficient.
a. Vesting must read: Mountain West IRA, Inc. FBO (Your Name) IRA.
b. Any lender address information must be our office address: 10096 W. Fairview Ave., Ste. 160 Boise, ID 83704.
3. You will need to sign the note “Read and Approved by: (Your Name)”.
a. If the note requires a “Lender” signature, MWIRA will sign on behalf of your IRA.
4. If this note is secured by a Deed of Trust – MWIRA will need a copy of the deed.
a. Please note that the aforementioned vesting and address information apply.
5. If the borrower is an entity, MWIRA will need a Certificate of Good Standing from the state in which the entity is registered and a Corporate Resolution listing the entity’s authorized signers.
6. MWIRA must receive all complete and correct documentation at least 2 business days prior to the date you wish funds to be sent. Incomplete documentation may result in processing delays.
7. Once the Deed is recorded, please send the original documents to our office address below.
Required forms and documents can be mailed, faxed or sent as an email attachment to:
Mountain West IRA
10096 W. Fairview Ave., Ste. 160
Boise, ID 83704
Fax: (208) 376-4567 – Attention Transactions Department
IMPORTANT: If you are using 100% of the cash in your IRA for this purchase, and you pay your fees by check or from your IRA account, you will need to complete at least one of the following items before your transaction will be processed:
Place a credit card on file with MWIRA to pay your current transaction fees (if applicable) and to pay for future quarterly or annual recordkeeping fees as they arise.
Pay your current transaction fees (if applicable) and one year of recordkeeping fees in advance – you may pay these fees by check or credit card (one-time authorization).
Forms you will need to purchase Promissory Notes with your Self-Directed IRA
Mountain West IRA does not offer investment, tax, financial, or legal advice to clients. Individuals who believe they need advice should consult with the appropriate professional(s) licensed in that area.