First-position mortgage notes are generating 8 to 12 percent interest inside self-directed IRAs, with second-position loans pushing 15 percent or higher. IRA private lending remains one of the more compelling fixed-income alternatives available inside a tax-advantaged retirement account — provided investors understand the compliance framework governing every deal.
In a review of 1,997 SDIRA real estate transactions completed in 2025, mortgage notes and private loans accounted for more than half of all purchase activity — a notable shift reflecting how self-directed investors are navigating an elevated interest rate environment while maintaining predictable income inside their retirement accounts.
Discover how SDIRA investors can capitalize on the $875B CRE maturity wall in 2026.
With conventional lending still constrained by elevated interest rates, self-directed IRA investors are discovering a compelling opportunity: becoming the bank. Private notes and mortgage lending inside SDIRAs are attracting unprecedented interest, offering double-digit yields with real property collateral protection -- all compounding tax-deferred or tax-free inside a retirement account.