There was a borrower that I loan some money from my IRA for the rehab on a project. As far as I could tell, and can still tell, the project should turn out successfully. However, whenever I try and get a hold of the guy in charge of the project, he never takes my calls nor returns them. The secretary keeps brushing me off that the guy is busy with another client.
Initially, the guy issued me two promissory notes for the money I lent him. The two notes were due in January 2009, but we verbally extended for 60 days into March. Again, I’m back to this guy not returning my calls. I’m really irritated and am starting to get suspicious. I would prefer that the project complete successfully, but we’re talking about money on the line here. What does everybody suggest I do?
Are the notes secured by the real estate? What are the terms? Are they demand notes? Did the IRA invest in the notes directly or did it fund an entity that made the loans? If the money came from your IRA directly, any legal expenses must be paid with IRA funds as any payments by you personally would be a prohibited transaction. If you and the IRA are members of an LLC, you can make additional contributions to the LLC to pay for any legal expenses.
I haven’t went to the guy’s office in person yet. I pay $50 for a cell phone so that I don’t have to drive all over town! haha But, I’m starting to get to the point of being pissed off. The guy and his office are still there; she keeps taking daily messages for the guy to call me back and let me know what’s up. He is doing something with some real-estate in Indiana, but he isn’t doing jack with the real-estate in my/our home town. So, anything to tell to this guy in addition to “Where the hell is my damn money you idiot!!!” ?