Self Directed IRA: Investing in Fixer Uppers
The reason Self Directed IRAs are so popular is that there are many different types of real estate investments you can make with them. One of the
most popular ways many choose to maximize their profits with a Self Directed IRA is to flip properties. Following are three things to keep in mind to
help you maximize your investment dollar when flipping properties.
3 Keys to Maximizing Your Self Directed IRA Investment When Flipping Properties
For those who are patient, flipping fixer-uppers can provide a phenomenal return on for a Self Directed IRA portfolio. Careful research is required to
make sound decisions when flipping properties, but, that is the case with any investment. If flipping properties is how you choose to maximize your
retirement income via your Self Directed IRA account, keep the following in mind.
Property Location: Anytime you invest in real estate, this is always the first rule of thumb. Even novice real estate agents will tell you, location should
be compromised when investing simply because while you can change what the property looks like, you can't change the surroundings it sits in (at
least not in time to recoup your investment).
For, these are the things that prospective buyers will be looking for in their home. While it is "just an investment for you," it will be a home for them.
Cosmetic Renovations: Where possible, choose properties that need as little work as possible. This is especially true if you are just starting out. After
all, you're using the monies from your self-directed IRA LLC - Self Directed IRA account to increase your portfolio's value. Don't fall in love with the
wrong property and overspend to buy it, or fix it. This is a business investment - nothing more, nothing less. Never forget that.
Cultivate a Relationship with a Rehab Specialist: This will be perhaps the smartest business move you will ever make. This person can look at a
property and determine the structural soundness of a potential investment from a non-aesthetic angle (e.g. wiring, plumbing, heating, etc.). If a
property is structurally sound and all it needs are cosmetic fixes, it just may be the diamond in the rough to turn your Self Directed IRA investment into
a major profit.
About the Author
Self Directed IRA Investing gives you true flexibility and the ability to truly diversify your retirement funds. Learn more about this special IRA or call
Truly Self Directed IRA (TSD-IRA) to learn more at 877-339-4559. Download a free self-directed IRA ebook.