Self-Directed IRA LLC: Investing in Handyman Specials

One of the favored investments of Self Directed IRA account holders is buying and selling fixer uppers. Fixer uppers allow you to maximize your investment via property flipping. If you choose to flip properties via your Self Directed IRA account, following are three things to keep in mind.

3 Ways to Maximize Your Self Directed IRA Profits When Buying and Selling Fixer Uppers

Fixer uppers, commonly referred to as handyman specials, are an excellent strategy for maximizing your Self Directed IRA profits. However as with any investment, it is imperative that proper research is done first. Real estate can be one of the safest investments you’ll ever make, if you do your homework beforehand and keep the following in mind.

Property Location: Anytime you invest in real estate, this is always the first rule of thumb. Even novice real estate agents will tell you, location should be compromised when investing simply because while you can change what the property looks like, you can’t change the surroundings it sits in (at least not in time to recoup your investment).

For, these are the things that prospective buyers will be looking for in their home. While it is “just an investment for you,” it will be a home for them.

Renovations: Choose properties that need as little work as possible done on them. This can be tricky however, because some properties show terribly. But, you have to be able to look beyond the nasty toilets and overgrown yards to what a property could be. Many investors lose out on excellent deals because they can’t see past the initial abysmal look of an investment property. Cultivate this skill, and you’ll pick up deals many overlook.

Cultivate a Relationship with a Rehab Specialist: This will be perhaps the smartest business move you will ever make. This person can look at a property and determine the structural soundness of a potential investment from a non-aesthetic angle (e.g. wiring, plumbing, heating, etc.). If a property is structurally sound and all it needs are cosmetic fixes, it just may be the diamond in the rough to turn your Self Directed IRA investment into a major profit.