Self-Directed IRA required
The account must be administered as a self-directed IRA by a custodian or administrator willing to hold private notes. A conventional brokerage or bank IRA should not be assumed to permit this investment.
Retirement-Account Private Lending
Use a Self-Directed IRA to Explore Liquor License Lending
A conventional custodian-limited IRA generally cannot hold this type of private note unless the account is administered as a self-directed IRA by a custodian or administrator that permits the asset. A self-directed IRA—whether tax-classified as Traditional or Roth—may, subject to custodian acceptance and applicable rules, lend to an unrelated third-party borrower purchasing or refinancing a transferable Florida 4COP Quota or 3PS Florida liquor license. The IRA account, not the owner personally, funds and owns the note, and principal and interest return to the IRA.
The Basic Structure
A Self-Directed IRA is the investor — not the account owner personally
Traditional or Roth tax status
“Self-directed” describes how the account may hold alternative assets; it is not a separate tax classification. The underlying IRA may be Traditional or Roth, subject to custodian procedures and independent tax and legal review.
Third-party borrower
The borrower should be an unrelated party who is not a disqualified person with respect to the IRA. The transaction must be evaluated for direct and indirect prohibited-transaction concerns.
Interest returns to the IRA
Loan payments are generally directed to the retirement account through the custodian or administrator. The IRA owner should not personally receive the borrower’s interest or principal payments.
Why a specialized self-directed custodian may be necessary
Conventional retail IRA, SEP IRA and brokerage platforms—including standard accounts offered through firms such as Morgan Stanley and Charles Schwab—typically focus on publicly traded securities and firm-approved investments. Conventional bank or affiliated brokerage platforms such as Bank of America/Merrill, Chase and BMO likewise should not be assumed to accept custody of a client-originated private note secured by a Florida liquor license. Some of these institutions offer selected alternative investments or private-credit funds to qualifying clients, but that is different from allowing an IRA or SEP IRA to originate and hold an individually negotiated 4COP Quota or 3PS liquor-license note. Policies, account eligibility and asset-acceptance standards vary and must be confirmed directly with the institution.
Florida Beverage-Law Interests
Direct ownership and license-secured lending are not the same
A Self-Directed IRA may be able to pursue either structure, but qualification of the IRA owner alone is not enough. The proposed titleholder, ownership chain, custodian, interested parties, transaction documents, licensed premises, and DBPR Division of Alcoholic Beverages and Tobacco approval requirements must all be evaluated before retirement assets are committed.
Purchasing an ownership interest
In a potential direct-investment structure, the Self-Directed IRA’s custodian for the benefit of the IRA—or an IRA-owned legal entity—would seek to acquire an ownership interest in the license or licensed business. This structure is not automatically permissible merely because the IRA owner is personally qualified.
- The custodian must accept the asset and proposed ownership structure.
- DBPR must accept and approve the applicant, titleholder, ownership chain, and transfer.
- All required direct and indirect interested persons and entities must be disclosed.
- Applicable individuals and entity officers must satisfy age, moral-character, and conviction qualifications.
- Federal IRA prohibited-transaction, self-dealing, tax, and operational restrictions require independent review.
Funding and holding a secured note
In a lending structure, the Self-Directed IRA lends funds to an unrelated third-party buyer and owns the promissory note. The borrower—not the IRA owner—uses the proceeds to finance part of a Florida 4COP Quota or 3PS liquor-license purchase.
- If the note is secured by the liquor license, §561.32(1)(b) deems the secured party indirectly interested in the license.
- The security interest must be disclosed, and Beverage Law qualifications apply before it can be enforced.
- Section 561.65 governs Division recording, continuation, and judicial enforcement of a license lien or security interest.
- Even an unsecured or contractual lending arrangement may require disclosure or DBPR review based on its actual terms.
- Principal and interest must return to the Self-Directed IRA through the custodian.
§561.15Licenses; qualifications required
Good moral character, minimum age, and specified conviction restrictions for license applicants and relevant entity officers.
§561.17Applications and interested partiesRequires the application and disclosure of relevant direct and indirect interests and authorizes denial when an interested party is unqualified.
§561.32Transfers and security interestsClassifies a person holding a security interest in an alcoholic-beverage license as indirectly interested in that license.
§561.65Mortgagee’s interest in licenseAddresses Division recording, notice, duration, foreclosure, and enforcement of qualifying license liens and security interests.
Moral character and disclosure.
Florida Statutes §§561.15 and 561.17 and Florida Administrative Code Rule 61A-1.017 apply to qualification and moral-character review. DBPR Form ABT-6002 instructs applicants to disclose direct and indirect interests and the complete ownership structure. No direct purchase or secured-loan structure should be treated as approved until the custodian and DBPR have reviewed the actual parties and documents.
Review DBPR Form ABT-6002Optional Administrative ServiceNo investment advice or securities registration Possible loss of capital Not FDIC insured or guaranteed
Self-Directed IRA Setup Assistance
FLLM charges a flat $495 administrative fee to identify possible self-directed IRA custodians or administrators that state they permit private-note investments, help coordinate account setup and transfer or rollover paperwork from a client’s existing Traditional IRA, and coordinate access to independent attorneys experienced in Florida liquor-license transactions. The client independently evaluates and selects every custodian and attorney. The account and retirement assets are established, held and transferred by the selected providers — not by FLLM.
Administrative setup & transfer coordination
We help keep the administrative process organized while you remain in control of the custodian, account elections, signatures and every investment decision.
- Identify one or more possible self-directed IRA custodians or administrators that state they permit private-note investments.
- Organize account-opening materials required by the custodian or administrator you independently select.
- Help assemble factual information and supporting documents requested by the selected provider, using information supplied or approved by you.
- Help coordinate transfer or direct-rollover paperwork from an existing Traditional IRA with the existing provider and receiving custodian.
- Track administrative follow-up, missing items and status updates while the self-directed account is opened and funded.
- Prepare an administrative checklist for a future 4COP Quota or 3PS private-note investment request.
- At the client’s request, identify and coordinate communications with independent attorneys experienced in Florida liquor-license transactions. Attorney engagement, legal advice and legal fees are separate and are not included in the $495 FLLM fee unless expressly stated in a written agreement.
Illustrative Funding Structure
From a Traditional IRA to an IRA-owned liquor-license note
This example shows the movement of retirement assets and loan proceeds. It is not a recommendation, guarantee, or substitute for custodian, legal, tax, and investment review.
- 1Existing Traditional IRA
Retirement assets are held at the client’s current brokerage, bank, or retirement-plan provider.
- 2Direct transfer or rollover
The existing provider sends eligible assets to the receiving self-directed IRA custodian under provider procedures.
- 3Self-Directed IRA
The specialized custodian establishes and administers the account and must approve the proposed private-note asset.
- 4IRA funds and holds the note
The Self-Directed IRA, not the account owner personally, lends funds and becomes the owner of the promissory note.
- 5Unrelated liquor-license buyer
The borrower uses the loan proceeds to finance part of the purchase price of a Florida 4COP Quota or 3PS liquor license.
Repayment path:
The borrower’s principal and interest payments return directly to the Self-Directed IRA through the custodian—not to the IRA owner personally.
Administrative scope only. FLLM may identify possible custodians or administrators, coordinate paperwork, and facilitate introductions to independent Florida liquor-license attorneys, but FLLM does not endorse, recommend, select or guarantee any custodian, attorney, account, rollover or investment. FLLM is not a law firm and does not supervise the attorney, establish an attorney-client relationship, include the attorney’s legal fees in the $495 service fee unless expressly agreed in writing, choose tax elections, draft customized legal or loan documents, provide legal, tax or investment advice, handle retirement funds, sign forms, determine prohibited-transaction compliance, or guarantee that a provider will accept a proposed investment. The client independently retains counsel, reviews and approves all elections, and signs all required documents. Any movement of retirement assets is handled by the existing provider and receiving custodian or trustee under their procedures.
FLLM is not registered as an investment adviser with the SEC or any state securities authority and is not a FINRA-registered broker-dealer. FLLM does not provide investment advice or recommend any borrower, lender, custodian, note or transaction.
Private loans connected with liquor-license transactions involve substantial risk. A borrower may default, collateral value and liquidity may decline, enforcement may be delayed or unsuccessful, and an investor may lose some or all principal.
A private note is an investment, not a bank deposit. It is not FDIC insured, is not guaranteed by FLLM, any custodian or any government agency, and may lose value.
How a Transaction Could Work
From opportunity to IRA-owned private loan
- Identify an unrelated borrower and transaction. The borrower may be buying or refinancing a Florida 4COP Quota or 3PS quota liquor license.
- Review the license and loan economics. Investors should evaluate county-specific license value, requested loan amount, borrower equity, repayment capacity, liens, transaction timing and exit strategy.
- Confirm custodian eligibility before committing funds. The IRA custodian or administrator must be willing to hold the proposed private-debt investment and complete its own documentation and review process.
- Complete prohibited-transaction review. The IRA owner should have qualified tax or legal professionals determine whether the borrower, related parties or transaction structure creates a prohibited transaction.
- Document and fund through the IRA. If approved, the retirement account — not the IRA owner personally — funds the loan, and the note and related documents are titled for the IRA in the form required by the custodian.
- Direct payments back to the IRA. Principal and interest are paid to the IRA account according to the loan documents and custodian procedures.
License-Backed Loan Documents
How a “chattel mortgage” can fit into a Florida quota-license loan
The note creates the debt; the security agreement identifies the collateral.
A private loan may include a promissory note and a separate security agreement—sometimes traditionally titled a chattel mortgage—that identifies the quota license as collateral and states the borrower's covenants and the lender's contractual remedies. The agreement may restrict an unauthorized sale, assignment, lease, additional lien, or other disposition while the loan remains outstanding.
A Florida quota liquor license is a regulated general intangible, not ordinary physical chattel. The agreement does not give the IRA owner or custodian a right to operate under the license, and signing it does not by itself prove that the lender's interest was recorded or perfected.
Important IRS Rules
This is not the same as taking a loan from your IRA
- The IRS states that participant loans are not permitted from IRAs or IRA-based plans.
- Borrowing money from your own IRA can be a prohibited transaction.
- Using IRA assets as security for your personal loan can create adverse tax consequences.
- Lending money or extending credit between a plan or IRA and a disqualified person can be prohibited.
- Direct or indirect use of IRA assets for the benefit of a disqualified person can create prohibited-transaction risk.
- Nonpublicly traded or directly controlled assets can carry increased prohibited-transaction risk and require careful administration.
Illustrative Example
A retirement account funds an unrelated buyer’s license purchase
Example only — not an offer or promised return
An unrelated buyer agrees to purchase a transferable Florida quota liquor license and seeks private financing for part of the acquisition. An investor with a self-directed IRA identifies the opportunity, completes independent underwriting and confirms with the IRA custodian and professional advisers that the investment is eligible. If approved, the IRA funds the loan and holds the investment through the custodian. The borrower makes scheduled principal and interest payments back to the IRA under the loan documents. Any collateral package, guarantees, lien rights, perfection steps and enforcement remedies must be documented for the specific transaction and applicable law.
Investor Due Diligence
Private lending can produce income — and can also lose money
- Verify the exact license, county, status, transferability and market value.
- Review borrower credit, liquidity, equity and repayment capacity.
- Understand whether the loan is secured and what remedies are actually available after default.
- Review existing liens, senior debt and any competing claims.
- Confirm the interest rate, maturity, amortization, balloon terms, fees and prepayment provisions.
- Use independent legal, tax and retirement-account professionals before funding.
Important: FLLM is an information and marketplace platform, not an IRA custodian or trustee, registered investment adviser, FINRA-registered broker-dealer, tax adviser or law firm. Private notes are not FDIC insured or guaranteed and may result in the loss of some or all invested capital. FLLM does not determine IRA eligibility or prohibited-transaction compliance and does not guarantee repayment, return, collateral value or liquidity. Investors and borrowers should obtain independent legal, tax, investment and retirement-account advice before entering any transaction.
Explore Private Lending
Review opportunities — or get help organizing your IRA setup.
Evaluate the license, borrower, collateral structure, loan terms and retirement-account eligibility before committing capital.