private debt
Private debt allows investors to earn interest income by lending to individuals, companies, and other entities. With a self-directed IRA, you can hold mortgage notes, corporate debt, and other fixed-income investments in a tax-advantaged IRA account.
Private debt can be an attractive option for investors who want steady, predictable income potential outside of traditional markets. Common investment types include:
Mortgage notes: trust deeds – Secured by real property, these notes provide interest income (often at a discount) with the benefit of tax-deferred or tax-free treatment inside your IRA.
Promissory notes: Debt agreements where one party commits to pay a specific amount on set terms, with payments received under your IRA’s tax advantages.
Timber deeds: Trust deeds secured by timberland, offering income and potential appreciation from timber sales, all sheltered by IRA tax benefits.
Private corporate debentures: Allow your self-directed IRA to loan money to a corporation (including convertible debentures) at a fixed interest rate, with payments and interest received on a tax-advantaged basis.
Earn regular interest payments while preserving principal.
Reduce exposure to stock market volatility with alternative income sources.
Structure investments to fit your desired repayment schedule and risk tolerance.
Interest income grows tax-deferred or tax-free inside an IRA.
When investing in private debt through a self-directed IRA, investors should keep the following requirements in mind:
The loan cannot involve disqualified persons such as the account holder, certain family members, or entities they control.
Loan agreements, promissory notes, and payment instructions must be submitted to STRATA for custody and reporting.
Principal and interest payments must go directly into the IRA. Personal bank accounts may not be used.
Accountholders must provide debtors with the IRA titling information, and debtors must include it on all payments to ensure funds are applied to the correct IRA account.
For a detailed guide, download STRATA's Private Debt Investment Checklist.
Based on customer sentiment, our clients report that STRATA makes self-directed investing simpler, more responsive, and more supportive at every step.
Simple, stress-free processes – “STRATA makes complicated transactions easy to handle.”
Quick, responsive support – “When I reach out, I get answers fast.”
Confidence in every step – “I feel supported and secure managing my IRA.”
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