Finance your next commercial project with an IRA loan from NASB.
Contact one of our loan officers to find out how you can invest in commercial property with an IRA using an IRA non-recourse loan. We’ll answer all your questions, including:
- How self-directed IRAs function
- What a non-recourse loan is and how it works
- What the IRS has to say about real estate in an IRA
- The step-by-step actions on how to get started using real estate investments within your IRA to earn returns
IRA Loan General Terms and Pricing
Amount - $500,000 - $5,000,000
Interest Rate - Fixed interest rate, or spread versus U.S. Treasury security, to be determined based upon individual project risk
Rate Lock - Locked at commitment
Term - Three to ten years
Amortization - Five to 20 years; 25 years may be available for newer properties, specific property types, or longer leases
Loan-to-Value - Up to 60% of appraised value; Credit tenant properties according to the tenant.
Application Fee - None
Asset Types - Multifamily, Single Tenant/Credit Tenant, Multi-Tenant Retail with National Tenants, Quick Serve Restaurants/Casual Dining with long term corporate leases
Debt Coverage - 1.25x based on stabilized net operating income; exceptions on lender’s approval
Prepayment - No lockout; Fee is typically from 1% to 3% depending on rate and term
Operating Reserves - Typically none except for Multi-family properties; determined on individual project or loan structure basis
Security - First lien position, lease assignment; other collateral upon lender’s approval
Recourse – Non-recourse
Subordinate Debt - No
Standard Provisions - Third-party reports (appraisal, survey, etc.); Escrows for taxes and insurance; Minimum occupancy requirements; Annual financial reporting on property operations and borrowers
Assumption - Subject to lender’s consent and payment of assumption fee
Underwriting - Underwriting decisions made within 48 hours of submission of a complete package
Closing - 60-day allowance; average closing with the submission of all third-party reports and appropriate documentation is 35 days
Recent Commercial IRA Loan Transactions
$3,000,000
Acquisition
80-unit Multifamily
McAllen, TX
$2,475,000
Refinance
Anchored Retail
Elizabeth, CO
$1,470,000
Acquisition
GSA Office
Kemmerer, WY
$1,185,000
Acquisition
60-unit Multifamily
Irving, TX
$900,000
Acquisition
32-unit Multifamily
Tucson, AZ
$700,000
Refinance
43-unit Multifamily
Kansas City, MO
