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Equity Trust Educational Speaker, John Bowens, sat down with our Self-Directed Investor of the Year, Mark from North Carolina, to discuss how he successfully completed his first two investments resulting in $119,000 of tax-deferred profits.
In part two of the interview, Mark walks through his first investment – resulting in $45,000 of tax-advantaged profit – and how he managed his investments in his IRA.
Haven’t read part one yet?
John: Mark, tell us a little bit about your experience with the rehab. Tell us a little bit about how you found your contractors and what that process looked like.
Mark: Sure. Being the very first investment that I’ve ever had, it was difficult finding contractors initially.
And the reason is because I’ve never done this, I didn’t know where to look and it took me a few months to really find first base.
It doesn’t necessarily happen like it does on TV where they rehab a house in 30 to 60 to 90 days.
John: Yeah and I appreciate what you shared with me off-air about identifying a group of like-minded investors in your local market. Could you speak a little bit about how you found that Real Estate Investment Group and how you got yourself plugged into that group?
Mark: I actually brought the realtor out to this house after I purchased it. And he said, you actually need to keep your rehab costs to x, so that you can actually turn a profit.
But more importantly, the other thing that he’s turned me on to is, every Friday morning at 7am there’s a meeting that occurs with all real estate investors, brokers, and agents.
They share information like, here’s a property that I just purchased. I’m looking for somebody to come in and rehab it, or they need somebody to wholesale it, or they need somebody with hard money, or what have you.
There’s all kinds of opportunities. That’s the only chapter that I’ve ever gone to.
So, between my attorney, myself, and we got Equity Trust on the phone, to actually work through the mechanics of the partnership to satisfy all parties. Equity Trust is part of the team too.
John: That’s a great point. Because when you have us as one member of your financial team, alongside the attorney or CPA, realtor, title company, etc., you can have that conference call and we can talk through that.
That being said, the rehab cost $64,000. Mark, did you have a general contractor that you made installment payments to? How did that work in terms of getting that money from the IRA and out to the recipients of those funds?