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October 29, 2012
There is a common misconception out there regarding self-directed IRAs that you have to already have a lot of money in your IRA to get started with self-direction. Here’s an example of an investor who started out with just a 5,000 contribution to her self-directed Roth IRA.
This particular investor had some friends in the real estate business who specialized in buying and selling Real Estate Contracts. Her friends helped her find an individual who was looking to get some cash by selling his Real Estate Contract for a small piece of property in the Appalachian Mountains. The contract was originally sold to him for $23,000 and he had invested a significant amount of equity in the property and paid down the contract considerably. In fact, if he were to continue making payments, he would have the property paid off in roughly two and a half years.
Therefore, the investor decided upon what she would like to offer the seller for his Real Estate Contract, and after some negotiation, agreed upon a price that would earn her 10% on her money over the next 2.5 years. A check was sent to the seller through her self-directed IRA, completing the entire transaction in less than a week!
You may not think that 10% on $5,000 is very much money, but what if you have 10 investments like this or you start buying bigger contracts? The possibilities are endless with a self-directed IRA. Whether you are looking to issue notes or mortgages, invest in tax liens, or purchase real estate, the choice is yours with a Florida self-directed IRA from NuView. Call us at 407-367-3472 to get started!