Self-Directed Investor of the Year Hall of Fame

By Heather Taylor0 Comments

As the 2017 Equity Trust Self-Directed Investor of the Year contest begins, take a look at some of the past winners:

2016: David – Ohio
David’s IRA bought a house in his rural neighborhood after the previous owners struggled to pay bills and maintain it. He now rents the property to a retired veteran and his wife. His IRA is receiving rental payments, and the property was recently appraised for $50,000 more than the purchase price.
 
2015: Lowell – California 
Retired teacher Lowell rolled his retirement plan into a self-directed IRA, and has grown his retirement account faster by using funds from his IRA to complete real estate rehabs, in addition to improving his community. One of his recent investments earned a 77-percent profit.
 
2014: Arnold – Michigan
Arnold completed a long-distance real estate rehab in Hilton Head, S.C., transforming a property into a profitable vacation rental. The investment is currently netting him approximately a 33-percent return each year.
 
2013: John – Indiana
John bought a 12-unit apartment building that had delinquent taxes at a city sale for $3,500. His IRA hired contractors to rehab the property and is receiving steady rental income from all the units. Some of the tenants were found through a program that assists local veterans find housing.
 
2012: Richard – New Jersey  
Richard found an enterprising way to grow his daughter’s Coverdell Education Savings Account (CESA).

Richard heard of an investor willing to sell a $100,000 note for $90,000. He used $500 from his daughter’s CESA to purchase the option to buy the note for $89,500 (with the initial $500, a total of $90,000).
 
Richard sold the option to two investors for $5,500. Those investors acquired the note for $89,500 and collected the $100,000 from the borrower.

Richard’s daughter's account received the $500 option fee back plus a net gain of $5,000.
 
Have you completed a self-directed investment in 2017 that you think is worthy of the title Self-Directed Investor of the Year? Submit your entry before December 21, 2017. The grand-prize winner will have his or her Equity Trust annual maintenance fee waived for the accountholders lifetime!*
 
*Awarded to account holder, with a maximum value of $500 per year for one account.
 
Equity Trust is a passive custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.

Case studies provided are for illustrative purposes only.  Past performance is not indicative of future results.  Investing involves risk including possible loss of principal.  Information included in the above case study was provided by the investor and included with permission.  Equity Trust Company does not independently verify all information provided by third parties.