OfflineFinally posting my first deal! I have been learning so much about real estate and there are so many different angles!! Well, one of the things I learned is that you can use IRA money to buy real estate. I had some old 401K accounts that I had rolled over into various mutual funds that have been performing very poorly over the last few years! I am in the process of transferring the money to a self directed IRA. Now my investments options are almost unlimited. One of my investments is to buy a house for cash...yes buy a house for cash. No bank & no realtor!
So here's the deal:
Fully renovated 4 bedroom, 2 bath home in Jacksonville, FL. My cost $105,000, FMV $136,000 estimated closing costs $1,500, for a total investment of $106,500.
Not only is the house fully renovated, but it is also already rented by a rent to own tenant and under property management. The tenant has an agreement to buy the property in 2 yrs (from Oct 2009 when they took occupancy) and the rent is $1,050 per month. After taxes, insurance and property management I will be collecting $756 rent per month which goes back into my IRA tax free!!!! So in about 19 months I can sell the property to the tenant and my total profit at that point should be $43,864!!!!! Again, tax free and then I can invest the money back into more real estate!!!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Congratulations!!! The first one is always the hardest.
Great job!!
Let me know if I can be of any help. Typically you have to have a self-directed IRA to do these types of deals.
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
In order to invest in real estate, you must have a self-directed IRA, there are only a handful of companies that do this. Still plenty more to do.
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Let me know if I can help, there are only a handful of companies that handle self-directed IRAs.
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Nice job Chris it is always GREAT to see people succeed Keep them coming and keep us posted on all deals so we can all gain from Success. Thanks again for posting
Jay C
Jay C
Chris, great job! It's nice to see a local on here showing us that it can be done, even if the deal isn't in RI. PS Thanks for telling us all along the way how you did it too. Congrats again.
Jean
Way to go Chris you are on your way to better things
Angie
May each day get better
Hello Chris ! Congratulations on your first deal. I see you are from Barrington,RI. I have been looking for Dean Students in RI to network with and to get this Real Estate Investing in High gear. Please contact me I am in Pawtucket RI
That's how you make your money work for you my friend. I heard of this brilliant strategy before. Good stuff!!!
I deserve success...PERIOD! Reggie Peoples-
Good job Chris,
To learn more about self-directed IRA's you can type it in on Wikepedia or go to selfdirectedira.org.
It states that if you have an LLC, as we should in this biz, we could get an IRA or a 401k with check cashing options that we manage ourselves, and do not need to pay another company to do so.
Stephanie
Stephanie
Congrads on your 1st deal, i'm next!!!
God Bless,
Serena
I'm thrilled for you and your first deal! I have been wanting to set up this self-directed 401K and get going on real estate from that perspective too. You are inspiring me. I hope to have my first or second IRA purchase done by The Edge! What a great way to invest! Congrats!!!
Cheers!
Louisa
Current Journal on Dean's site: The Second Chapter: http://tinyurl.com/p986al3
First Journal on Dean's Site: From the Beginning: http://bit.ly/ocv10
Your Welcome Louisa! Let me know if you need any help or advise, it has taken me all year to get funds transfer, get the account set up and purchase the first property. Closing is scheduled for Thursday! They have a lot of other real estate options. Check out: http://www.cmcapitalservices.com/ and http://www.preferredtrustcompany.com/
There are only a handful of companies the set up self directed IRAs. This site has a list of them along with a spreadsheet comparing costs: http://www.thehardmoneypros.com/self_directed_ira_custodians.shtm
Hope this helps!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
I have been hearing about this new way to self direct fund. I hope to see you get many more. Good luck
Averyday is a Friday so weak up each morning and get excited.
I have been hearing about this new way to self direct fund. I hope to see you get many more. Good luck
Averyday is a Friday so weak up each morning and get excited.
Hello Chris, that's the way to do it!!! I am glad to hear that someone has done a deal with thier self directed IRA. I have been told it was possiable but thought it was a hard thing to do...now you have proved me wrong. Now for the stupid question... is a 401K the same as an IRA? If it is an employer 401K is this still possiable? I mean its my money I should be able to do what I want with it but I can only barrow 10% of it with some pretty heavy penalties and I have to be in a hardship status...that's all I have found out so far. Diane
Diane,
A regular 401K and an IRA are not necessarily the same as a self directed IRA. Typically with both of these accounts you have limited investment options. I was able to roll my old IRAs (not my current one) into a self directed IRA, once it is there your investment options are almost unlimited. Hope that helps!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Sounds like a great deal - with very little work on your part besides - sweet! Just want to point out that in addition to the self-directed IRA there is something called the Uni-K. This is where you actually take a loan out from your IRA, and make interest only payments every month. The advantage of this is that the restrictions on what you do with the money and how you handle it are virtually none. The only catch is that you can NEVER be late for a payment - or all that you borrowed instantly becomes taxable income. But another route for everyone to consider who has those funds availalable.
Again Chris - congrats on the deal and courage to make your first deal and out of state one!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
The house in Jacksonville closed yesterday!!! So I officially own rental property!! My first and certainly not my last!!!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Chris,
Great job on getting your first deal done!
I wish you more and more success
~Miyuki a.k.a. Coco
Whether You Think You Can or Can't, You Are Right
~ Henry Ford ~
Way to go! That was speedy as heck...posted about the deal on 2/18, and on 2/27 you've closed and own income property. RE world - watch out now
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Yes it was! It helps when there is no mortgage and there is an established relationship with all the players! Now my IRA can FINALLY start making some money.
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Way to go on that first deal! Your post lets me know that it IS possible and I can do it too. Keep up the good work!
"Your ability to succeed is only limited by your ability to conceive that success in your mind. Believe and it shall be."
Money flows EASILY to me!
I am a money MAGNET!
I CREATE money!
I have enough money for ALL of my wants and needs!
Thanks! And yes you can do it!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Thanks! And yes you can do it!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
How exciting, your first deal closed. You are on your way now. I hear the first is the hardest now it's onward and upward.
Great job Chris....you're on your way to becoming successful....don't stop.
Woody
Woody
STAY FOCUSED OR LOSE SIGHT !!!!!
Congratulations for that first deal though you have a long, long way to go. Keep trying....dom
Good job.
Peace and Blessings,
“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light not our darkness that frightens us. Actually, who are you not to be? You are a child of God. Your playing small doesn’t serve the world. There’s nothing enlightened about shrinking so that other people won’t feel insecure around you. We were born to make manifest the glory of God that is within us.”
- Nelson Mandela
I wish I could transfer my 401 into a self directed IRA, but I am not aloud to touch it except for emergency reasons. Way to go Chris!
great to see you got the first one out of the way, please list the details if you dont mind so others can learn from it.
Richie.