Re: Self-directed IRA for RE investing - Posted by Chris (FL)
Posted by Chris (FL) on January 14, 2000 at 10:01:45:
Talk with the people over @ Mid-Ohio. One of their guys came down to our REIA and gave an example of a self directed IRA deal that really got my imagination going. It goes something like this:
Motivated seller wants debt relief. You tell him that you’ll rent now and buy (refinance) later. You give the guy $100.00 consideration (from your IRA). You agree to a bit of a discount on the strike price.
FMV — 100k
STRIKE PRICE – 90k
SELL PRICE ( in a couple years ) – 110k
PROFIT – about 20k
OUT OF POCKET – whatever you paid in option consideration ( could be as low as 10 bucks ).
So we’re talking about close to 20k profit without having to cut that extortioist known as Uncle Sam in on the deal. I find this sort of thing very exiting.
Ron LeGrand went over some of the same ideas when I saw him last. “Subject to” deals in ones self directed IRA were also discussed , but that’s a whole other story.
I am FAR from being an expert or any kind of authority on the subject ; so go talk to those in the know to verify what I’ve just posted. Just make sure you have an accountant and attorney that understand CRE.