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A few years ago, Bret from Louisiana learned he could diversify his retirement portfolio with alternative assets such as real estate. He sought out real estate investing education and decided to expand his retirement portfolio.
After opening a self-directed retirement account, he was able to find and structure an investment for only $100. It resulted in more than $21,000 in profit for his retirement account and a boost for the community.
Ready to Strike: Creating the Conditions Needed to Act Quickly
Through real estate investment education seminars, Bret learned how to find sellers, understand and empathize with their property-related challenges, and effectively communicate and implement solutions,
while also benefiting his account.
For example, Bret located a potential seller who was facing challenges with her property. It was in a struggling neighborhood (nearby homes were being auctioned off for just thousands of dollars), it needed repairs and was facing code violations.
Brett saw a potential opportunity to purchase the property, fix the violations and with some rehab he could either rent or resell it. But he had a problem: almost all of his IRA funds were currently invested in a different real estate project.
From his previous real estate training, Bret remembered an investing tactic involving a contract assignment, sometimes referred to as “wholesaling.”
Bret contacted the homeowner and explained he did not have the funds now, but negotiated a contract to purchase the property at a certain price within a certain time period. Bret’s IRA paid the homeowner $100 for the contract and the right to purchase the property in the future.
A few weeks later, Bret learned from neighbors of an individual who grew up in the neighborhood and was looking to return and who had home rehab experience. Bret contacted the former neighbor about the property.