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Hard Money/Private Money Lending with a Self-Directed Solo 401(k)

Hard Money/Private Money Lending with a Self-Directed Solo 401(k)

“There’s always room for growth in any business,” says Patrick St. Cin, Rocket Dollar account holder and former financial advisor. As a current private money broker and hard money lender, Patrick sat down with Rocket Dollar to discuss why he chose a self-directed solo 401(k) plan and how he uses it to fund his retirement.

If you are unfamiliar with all the available retirement options, a Self-Directed Solo 401(k) retirement plan allows you to invest in a wide array of investment asset classes. Therefore, allowing you to grow your financial portfolio beyond stocks, bonds, and mutual funds. Rocket Dollar account holders have used their accounts to buy real estate, invest in cryptocurrency, and grow their private and hard money lending businesses.

 

Self-Directed IRA or Solo 401(k)?

With a regular 401(k), it’s difficult to invest in private lending. That’s why many private and hard money lenders turn to self-directed accounts. When comparing account types, Patrick felt the flexibility of the self-directed solo 401(k) better served his needs than a typical IRA.

A Self-Directed Solo 401(k) allows his retirement funds to be the bank. With his Rocket Dollar solo 401K, Patrick has complete control from the onset, not only over what he wants to invest in (as long as it is qualified by the IRS), but how much money he wants to loan, the interest rate, length of payment, and payment frequency. He can serve as trustee over the 401(k) so custodian consent isn’t needed.

 A self-directed solo 401(k) allows much higher contributions (up to $56,000 for persons under 50 years of age) and participant loans of up to $50,000 or 50% of his account balance with no loan qualification.

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Lend money to make money with a Self-Directed Solo 401(k)

In short, fees and ease. When comparing other providers, Patrick felt the high yearly costs and frustration of hidden and tacked on fees were “outrageous, frankly.”

“...when I started looking at their fees, it was like they made more money than I did and I used to do it professionally.”

Rocket Dollar offers subscription-based transparent and affordable pricing with no hidden or tacked on fees. With a flat one-time account set-up cost of $360 and a monthly fee of just $15 per month, Self-Directed retirement funding is made more accessible and affordable than ever. As a completely online platform, creating an account takes less than five minutes and our specialists take it from there. “We got our funds moved and all the paperwork done very quickly and very efficiently. The accounts got set up very nicely,” says Patrick. With traditionally complex and time-consuming paperwork cut down to a minimum, Rocket Dollar made it easy to open and fund his account.

If you want to hear more from Patrick on private money brokering or hard money lending start he’ll be featured on the Rocket Your Dollar podcast in a few weeks. Subscribe to the podcasts o you don’t miss his episode.

 

Learn more about Self‑Directed retirement plans with our ultimate guide.

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