"Take control of your retirement with predictable 10-12% returns private loans through a self-directed IRA offer stability, tax advantages, and peace of mind for a richer future."

Rise Capital Investments

The "12% Solution" to Retire Richer

Most people settle for mediocre retirement plans offered by employer plans or commissioned planners, but there’s a better way to grow their wealth while increasing access to investing opportunities that yield higher returns and reliable income.

Private loans through a self-directed IRA (SD IRA) offer a unique path to consistent returns and tax advantages, putting you in control of your financial future. Rise Capital Investments private lending opportunities are designed to deliver predictable income and redefine what’s possible for your retirement.

1. Why You Should Have a Self-Directed IRA for Reliable Private Loans

Self-directed IRAs differ from traditional IRAs in one key way: the funds are placed with a "passive" custodian that allows investments in a wider range of asset classes, such as real estate, private equity, and private loans. Unlike mainstream custodians like Vanguard or Fidelity, SD IRA custodians facilitate alternative investments, offering unparalleled flexibility for investors.

A passive IRA custodian cannot give investment advice and does not manage your portfolio, but they serve a useful function as a resource to help you before placing funds to ensure your investments are in compliance by investing only in allowable assets with qualified entities.

2. Choose Private Loans for Your SD IRA to Retire Well

Private loans are an allowable asset in an SD IRA where you act as a lender to generate income through interest secured by a business such as a real estate deal. First position or first lien notes offer a fixed return that are a more stable and lower-risk alternative to equities that are "profit and loss sharing" investments.

There are several benefits to using a tax-advantaged account for private real estate loans to save money on taxes while earning a reliable cash flow, especially for investors looking for:

• Predictable Income: Fixed interest payments create reliable cash flow. Rise Capital’s private loans deliver 10-12% annual returns.

• Lower Risk Profile: Loans are secured by real estate assets, often with first-lien collateral. Ensure you are aware what position your loan is in in front of or behind other lenders and investors. This minimizes the risk of loss compared to equity investments.

• Diversification: Balancing equities with debt investments reduces overall portfolio volatility.

• Tax Advantages: Interest income is taxed as active income at ordinary rates, so for those nearing retirement age investing with an IRA can defer or eliminate those taxes depending on the account type used.

First position private loans to an experienced borrower are generally safer compared to other real estate investments because they sit at the top of the capital stack, ensuring that lenders are paid before anyone else including owners and equity investors in the event that the business plan had a mind of its own and did not read the business plan!

Who gets paid in what order matters a lot in managing investment risk.

3. Tax Advantages of SD IRAs

Using an SD IRA for private lending amplifies the benefits:

• Tax-Deferred Growth: Interest earned grows tax-deferred (traditional IRA) or tax-free (Roth IRA), maximizing compounding potential.

• Cannot Use Depreciation: Depreciation cannot offset taxes in an IRA unless it’s used to mitigate UDFI tax incurred when selling an investment that has an underlying debt, which real estate typically has. Investors can carry forward depreciation losses to use on other investments in taxable accounts, but it's not as useful inside an IRA.

• UDFI and Solo 401(k): Under certain conditions, a solo 401(k) will not have UDFI and cannot use depreciation inside the tax-advantaged account.

When considering UDFI tax, loss of access to depreciation, and higher risk, private loans at 10-12% often outperform equity investments due to their increased risk safety profile.

Understand the IRA rules so you can choose the structure most beneficial for your situation and goals.

4. Comparing Private Loans and Equity Investments

Returns vs. Risk

Private loans typically offer lower but more predictable returns than equity deals. Equity investments have potential for higher growth but come with greater risk and market dependency.

Reliability

A study by Morningstar corroborates that lower-risk fixed-income investments, like private loans, tend to outperform high-risk equities over time due to reduced volatility and more consistent returns. This makes them an attractive option for retirement-focused investors.

Image Suggestion: A comparison chart of private loans vs. equity investments, highlighting key differences in risk, return, and cash flow predictability.

Why Banks Lend On but Don’t Manage Properties

Sure, banks technically own real estate—just look at their massive towers dominating every downtown skyline. But there's a key difference in that they’re not in the business of running apartment complexes, single-family homes, or self-storage units. Those office skyscrapers are funded because banks stick to what works: lending money. It’s safer, more scalable, and far more profitable when done at scale. If they’ve cracked the code, why not take a page out of their playbook?

Banks prioritize lending because it offers stable returns with lower management overhead compared to property ownership. By acting as lenders, they avoid the risks and operational burdens associated with managing real estate, focusing instead on earning predictable interest income. More hands off and more reliable sounds like a great retirement plan!

“Lending provides steady income and peace of mind, especially as retirement nears.”

5. The Rise Capital Private Lending Experience

Rise Capital specializes in short-term real estate loans backed by first-lien collateral, offering:

• Annual Returns: 10-12% on loans ranging from $10K to $200K+. Investments over $200K earn 12%. The fund maximum investment of $2.85M at 12% yields an annual income of $342,000, a very reliably funded retirement income for our high net worth investors while preserving their remaining investable assets for other diversified options.

• Investment Customization: Choose individual deals in our accredited investor portal or opt for continuous reinvestment with just a simple deal approval signature.

• Hands-Off Management: All loan origination, servicing, and borrower due diligence is handled by our team, making this a truly passive investment.

• Short-Term Commitment: Investors starting with $10K-$199K earn a 10% return—a great way to build trust with short-term investments and see how we work together before committing more capital to earn enough income for a retirement in style.

6. Practical Strategies for Retirement Investors

Private loans are particularly valuable for investors approaching or in retirement:

• Cash Flow Stability: Regular interest income reduces reliance on volatile equity markets.

• Portfolio Balance: Combining debt and equity investments ensures growth potential while safeguarding principal.

“The sooner you start, the sooner you'll wish you'd started sooner!”

7. Key Considerations and Rules

Steps to Get Started:

1. Select an SD IRA custodian.

2. Roll over or fund the account.

3. Choose and fund investments through Rise Capital’s platform.

While SD IRAs offer unparalleled flexibility, compliance is critical:

• Avoid Prohibited Transactions: Loans must not benefit disqualified persons, such as immediate family members or yourself.

• Use a Reputable Custodian: Passive custodians ensure investment compliance, but investors retain control over decision-making and portfolio management. Personalized customer service and fee structure are key considerations when choosing a custodian.

Pick and choose which individual investments are a good fit for your portfolio.

8. Final Thoughts

Private loans through a self-directed IRA combine stability, predictable cash flow, and tax advantages—ideal for retirement-focused investors. With Rise Capital’s expertise and proven track record, you can confidently grow your retirement portfolio.

Invest With Your IRA Using This Free Guide:

Ready to start investing in real estate with part of your IRA funds? We have a free guide to help you get set up, then start looking at opportunities in our investor portal.

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