Why not take a typical private loan agreement and make it all your own? When investing in promissory notes with your self-directed IRA, you can do it (almost) any way you please.
A promissory note is a legal agreement for one party to lend money to another, with terms and stipulations specifically outlined. In other words, it’s a contract for a promise to pay. You can use them in a ton of different ways, like offering private loans for qualified individuals, business loans to companies looking for financing, or even by acting as the “bank” in a real estate deal. The many uses for promissory notes are why they’re so popular, even outside of self-directed IRAs.