Roxie of Florida might be retired from fighting crime, but no one can accuse her of slowing down. After ending her 26-year career on the police force, she has found a way to reinvent the way she earns income for herself using a method that she only recently discovered: self-directed real estate investing.
Roxie had her entire retirement savings in stocks and bonds because she thought it was her only option.
“I didn’t really like stock investing; I like self-directed investing better,” she says. “With stocks, you have to know when to sell, when to buy, when to do all that stuff. I know when to buy, but not when to sell.”
A colleague told her about self-directed investing and Equity Trust, and she discovered there was an option in addition to stocks and bonds.
“I was impressed when I found out you can invest your IRA in real estate because I’ve always liked real estate,” Roxie says.
Real estate investing, coupled with the capabilities offered through the self-directed IRA, turned out to be the perfect combination for Roxie.
“The self-directed IRA gives you cash flow,” she says. “If you put everything out into stocks, you have nothing (liquid) coming in.”
A strong start
Roxie closed on her first property in June 2014: a single-family house that she’s leasing with an option for the renters to own it. Her investing activity took off in a few short months. As of October 2014, she had six self-directed transactions under her belt, consisting of five lease-to-own properties and a note. These investments have already gained more than $15,000 in income back to the IRA, mainly from the monthly rental payments the properties generate.
One reason for Roxie’s comfort level with self-directed investing is that she is working with a mentor who already has a couple of years of investing experience, but she adds that the investing process has been easier than she thought it would be. With the help of her mentor, Roxie plans to add more notes and possibly commercial real estate to her portfolio.
She sees her investments as a win-win; in addition to supplementing her retirement income, she’s helping members of the community.
“It’s hard to get bank loans now,” Roxie says, adding “I’m helping people who couldn’t get a note so they can become a homeowner.”