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Real Estate

How a Real Estate Investor Turned $100 to $21,000

December 30, 2019
The entrepreneurial spirit allowed us to relieve the seller from pressure and simultaneously provided an opportunity for another party to purchase a personal residence in a neighborhood in which they grew up and still have many connections to this day.
Bret, Real Estate Investor from Louisiana

The former neighbor saw the potential in the house and agreed to buy it from Bret’s IRA.

Bret’s IRA executed the contract with the seller to purchase the property at the agreed price, the property was then sold to the former neighbor moving back to the community.

The difference between what Bret’s IRA paid for the property and what it was sold for resulted in a $21,000 gain.

Personal and Community ROI

Bret’s IRA investment was unique and structured based on his years of experience and education in real estate investing. He credits the flexibility of using his self-directed IRA.

Besides the positive impact on his retirement account, Bret’s transaction also benefits the seller and the community.

He opened his self-directed account after learning this was possible from other investors and has been happy with the decision.

“I like the idea of being a steward of my own retirement and future.”

With a self-directed IRA, your investments are up to you, within the bounds of the IRS rules and guidelines. The IRS does note provide guidance on what investment types are permitted, but dictates only what is NOT permitted. Examples of prohibited IRA investments include collectible (such as artwork, stamps, rugs, antiques and gems), certain coins and life insurance. See IRA Publication 590 for more information about prohibited investments.

No. This is considered a prohibited transaction (see IRC 4975).

Yes. However, your IRA must pay all expenses associated with a property that it owns, including renovations. Further, all proceeds from the sale of the renovated property must be deposited into your IRA.


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