SDIRAs: A new broker growth lever
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Self-directed IRAs let investors use retirement funds for income-producing real estate via non-recourse financing − and most still don’t know it’s possible. Here’s how brokers can tap this niche, educate clients, and leverage RCN Capital’s specialized SDIRA program
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RCN Capital rolled out its self-directed IRA (SDIRA) program in December of 2024 and “candidly, we didn’t do much with it − maybe a loan here or there,” says Chyna Jean-Baptiste, senior loan officer at the Los Angeles office.
It was a broker partner that Jean-Baptiste worked closely with who highlighted the reason for the sluggish launch.
“He was like, ‘wait, you do SDIRAs?’” Jean-Baptiste recalls. “That was the biggest hurdle thus far: people didn’t know about it.”
The RCN team got together, from frontline to legal, to hammer out how the program would look in practice. The bones were there − guidelines were in place and it was clear investor partners
RCN Capital is the leading nationwide wholesale lender specializing in residential investment loans for non-owner-occupied single-family and multifamily properties. RCN has a wide range of financing solutions designed to meet the needs of real estate investors across the country. RCN Capital’s loan programs are designed to support a wide range of investment strategies, including ground-up construction, fix and flip projects, and long-term rental properties. RCN provides our wholesale partners with flexible and competitive financing options that help their clients succeed in today’s dynamic market. Our streamlined process, and commitment to exceptional service make us a trusted financing resource.
“A lot of investors don’t know they can put retirement capital into income-producing assets like real estate, and we want to change that”
Chyna Jean-Baptiste,
RCN Capital
were willing to touch this space − but what did running a loan from start to finish actually look like?
After constructing and reconstructing the offering, things picked up. People realized that their retirement funds didn’t have to sit untouched until they hit appropriate retirement age − those funds could go to work for them now. Starting in spring of last year, there were consistently four or five loans a month and things ramped up from there.
“We’re in plug-and-play mode now,” Jean-Baptiste says, adding that despite this steady increase, RCN is keen to spread the word further and work with broker partners to highlight the power of this investment option.
“A lot of investors don’t know they can put retirement capital into income-producing assets like real estate, and we want to change that,” she says. “Many are already investing in real estate, so why not? It’s a way to have more control over those funds that are just sitting there.”
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Published March 9, 2026
“It’s less about being aggressive and more about being intentional and focused on long-term growth goals. There are all sorts of resources at your client’s disposal − utilize them”
Chyna Jean-Baptiste,
RCN Capital
What is a self-directed IRA? A self-directed IRA (SDIRA) is a type of retirement account that lets investors use their retirement funds to invest in alternative assets such as real estate, rather than only traditional stocks and bonds. With an SDIRA, that capital is redeployed into more flexible opportunities. That includes income-producing properties like residential, multifamily, and commercial, as well as select alternative investments such as crypto, precious metals, and raw land.
The key structural difference is control: instead of a traditional provider choosing mutual funds and similar
products, the SDIRA “puts the reins in the investor’s hands,” Jean-Baptiste says, so they can decide how those funds are invested.
Another big draw is the tax-advantaged growth potential. Investment returns flow back into the self-directed IRA, allowing for tax-deferred (traditional) or potentially tax-free (Roth) growth when structured correctly.
Because all funds must flow in and out of the IRA or 401(k) − you can’t use outside capital and sale proceeds can’t be taken personally − over time, that can mean faster growth than leaving money solely in traditional stocks and bonds. While there’s risk with any investment, “we see a lot more on the plus side with these,” Jean-Baptiste notes.
Typically, a specialized custodial company sets up and administers the SDIRA or similar structures (such as a solo 401(k)), helping ensure transactions aren’t treated as prohibited by the IRS. From there, investors can pursue familiar strategies: using retirement capital to buy and hold rental properties, diversify across different types of real estate, or pair the SDIRA with an LLC owned by the account for added structure and protection.
What makes SDIRAs really unique, Jean-Baptiste underscores, is that the financing is non-recourse to the investor personally. The loan isn’t based on their personal income, debt-to-income ratio, credit, or employment, but on the asset itself and then the IRA structure.
“That’s a huge shift from how most people are used to qualifying for these loans, and a key differentiator to convey to clients,” she says. “It’s super important because it changes how people think about leverage and risk.”
How brokers can best convey the opportunity For brokers, framing the SDIRA opportunity as a rapidly growing niche strategy is a powerful entry point. At a high level, as Jean-Baptiste puts it, you’re “helping investors unlock capital that they already have and put it to work more intentionally” in income-producing real estate, while keeping returns inside a tax-advantaged retirement wrapper.
Brokers can contrast investing inside and outside the IRA: personal investments may offer more flexibility in how cash flow and proceeds are used, but inside the IRA, those same deals trade some flexibility for tax-advantaged growth and non recourse protection.
From there, it’s about who this is really for: sit down with clients, ask about their long term goals, and don’t be afraid to say, “What are you trying to do here?” Critically, investors don’t need to be ultra sophisticated or running huge portfolios to benefit.
“It’s best suited for investors who already have a retirement account or funds aside, and they want more control over what that’s invested in,” Jean-Baptiste explains. “These are people who are long-term thinkers, understand real estate to an extent, and are comfortable using it as part of their retirement strategy, rather than just relying on the stock market.”
Risk and structure should also be part of the conversation, not an afterthought. Jean-Baptiste suggests emphasizing the fact that if the asset doesn’t perform, “our remedy is the property, not the investor personally.” Brokers can reassure clients that a custodial company is always in charge of the account, providing a checkpoint for questions about whether a property fits the rules and what the funds can be used for specifically.
“We never instruct people how to use their funds; we really just want to educate them on how we lend on these types of products,” Jean-Baptiste says. “If it aligns, great. If there’s some tweaking, great. When in doubt, refer people back to a tax attorney or their custodial company.”
Why RCN Capital? Not all lenders are set up to play in this space − and fewer still have a purpose-built SDIRA offering. With a compliance-focused approach brokers can lean on and specialized expertise, including deep understanding of IRS rules, prohibited transactions, and SDIRA mechanics, RCN ensures deals are structured correctly to protect the investor’s retirement account.
“As soon as an SDIRA file comes in, brokers know exactly what to work on,” Jean-Baptiste explains, adding that RCN also has partnerships with about eight different custodial companies that often use the same documents from loan to loan, which simplifies upfront vetting.
To account for the non recourse nature of these loans, RCN’s rates are adjusted slightly, sitting at around 0.15 percent above regular real estate loans, and with 10 percent less leverage. Outside of those two points, the process is intentionally standard, from required documents to closing fees and timelines.
Total SDIRA assets under management
$378B
Q3 2025
as of
1. The US retirement market was valued at $43.4 trillion as of Q1 2025, with IRAs comprising $16.8 trillion. This establishes the funds that could potentially flow into SDIRAs.
2. Only about 2−5 percent of IRA assets are held in self-directed IRAs, showing how underutilized the opportunity is, even though trillions are sitting in regular IRAs.
3. Industry surveys show ~20 percent of SDIRA investors list real estate or real estate syndications as their primary holding, supporting that real estate is a major use of SDIRA funds.
4. Real estate remains the most popular investment in an IRA.
SDIRA quick facts
For many investors, RCN is a practical entry point into using retirement funds for real estate. The firm currently lends on one to four-unit residential investment properties, which Jean-Baptiste describes as a smart place to start.
“We don't want a first investment to be a 15-unit huge property; you get a single family, it cash flows, that’s a great way to ease in. Newer investors absolutely can do this, especially with the residential investment properties that we specialize in.”
For brokers, partnering with a lender that built the SDIRA playbook − from custodial relationships to compliance to process − can turn a complex niche into a repeatable growth channel.
The bottom line?
“It’s less about being aggressive and more about being intentional and focused on long-term growth goals,” Jean-Baptiste sums up. “There are all sorts of resources at your client’s disposal − utilize them. At least start the conversation. All of us at RCN Capital are here to help.”
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Copyright © 1996-2026 KM Business Information US, Inc.
Companies
Glossary
Newsletter
About us
Authors
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Contact Us
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RSS
US
CA
AU
NZ
UK
SUBSCRIBE
White papers
MPA Talk
Premium content
Resources
TV
Wholesale
Technology
Reverse
Non-QM
Commercial
Specialty
Best in Mortgage
Market updates
Industry trends
Industry moves
Guides
Business growth
Mortgage Industry
Broker INTEL
News
Broker intel
News
Companies
Glossary
Newsletter
About us
Authors
Privacy Policy
Cookie Policy
Conditions of Use
Terms & Conditions
Contact Us
Sitemap
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Copyright © 1996-2025
KM Business Information US, Inc.
