Investing in Rehab-and-Flip Properties
Flipping houses is one of the most popular real estate investments available.
A great number of individuals generate sizeable income on these projects when the property is purchased at the right price, renovated with a reasonable amount of funds, and sold for a profit.
Even though flipping homes is the most common practice to earn investment income, you can also buy and flip commercial property such as a restaurant or office space. You can do the same with property in foreign countries provided you are familiar with the rules and regulations of investing abroad.
Your self-directed IRA is able to acquire these investments and earn income in the same manner. Not only does real estate add diversity to your portfolio, a successful investment can help you reach your retirement planning goals.
Rules of Investing with Retirement Funds
You can partner your IRA funds with personal funds, or with another IRA, person, or entity to acquire more lucrative assets. Income and expenses are distributed according to the percentage of ownership.
It is critical to perform extensive due diligence on any potential asset you are considering for investment purposes. This includes researching past history, the realtor and other parties involved in the sale, verifying past and present owners and/or tenants, becoming familiar with home owners association restrictions and insurance policies, and even past resale history. If you are investing in foreign real estate to rehab, make sure you have a clear understanding of how the country regulates investing with retirement funds and know the rules of investing in general as these can differ from country to country.