Raising Private Capital from SDIRAs & HSAs

[Henrry Novas]

Hey everyone,

I'm looking to learn how investors raise private capital from Self-Directed IRAs (SDIRAs) or HSAs for real estate deals. I know custodians like Equity Trust, Quest Trust, and Advanta IRA allow this, but I'd love insights from those who've done it.

- Best way to approach potential lenders?

- Key things to present the opportunity properly?

- Common hurdles when working with SDIRA lenders?

- Any recommended books, courses, or experts to learn from?

I’m raising funds for new construction projects and want to fully understand the process before talking to lenders. If you’ve structured deals this way, I’d love to connect. Appreciate any insights!

[Chris Seveney]

Quote from @Henrry Novas:

Hey everyone,

I'm looking to learn how investors raise private capital from Self-Directed IRAs (SDIRAs) or HSAs for real estate deals. I know custodians like Equity Trust, Quest Trust, and Advanta IRA allow this, but I'd love insights from those who've done it.

- Best way to approach potential lenders?

- Key things to present the opportunity properly?

- Common hurdles when working with SDIRA lenders?

- Any recommended books, courses, or experts to learn from?

I’m raising funds for new construction projects and want to fully understand the process before talking to lenders. If you’ve structured deals this way, I’d love to connect. Appreciate any insights!

 We have raised tens of millions from SDIRA investors and here is what we have found:

1. Best way to approach them is through education. Providing free education and explaining to them what you are doing works best. Being all salesly and trying to sell them on something typically has not been a great strategy.

2. Key things to present - The biggest difference between a SDIRA investor and a cash investor is UDFI/UBIT - I would present everything you were going to present but then include this factor. Are you taking on any bank leverage and will that impact the SDIRA where they have UDFI? Saying the answer is no and then having it be a yes will lead to a lot of upset investors.

3. Common hurdles is going through the paperwork to get the investment through the door - paperwork can be more tedious.

4. I do not think there are any books out there specific to this, what I would say is experience is the key - make sure you have experience and a great legal team to setup the structure and any SEC exemptions you need to raise money.