Finally posting my first deal! I have been learning so much about real estate and there are so many different angles!! Well, one of the things I learned is that you can use IRA money to buy real estate. I had some old 401K accounts that I had rolled over into various mutual funds that have been performing very poorly over the last few years! I am in the process of transferring the money to a self directed IRA. Now my investments options are almost unlimited. One of my investments is to buy a house for cash...yes buy a house for cash. No bank & no realtor!
So here's the deal:
Fully renovated 4 bedroom, 2 bath home in Jacksonville, FL. My cost $105,000, FMV $136,000 estimated closing costs $1,500, for a total investment of $106,500.
Not only is the house fully renovated, but it is also already rented by a rent to own tenant and under property management. The tenant has an agreement to buy the property in 2 yrs (from Oct 2009 when they took occupancy) and the rent is $1,050 per month. After taxes, insurance and property management I will be collecting $756 rent per month which goes back into my IRA tax free!!!! So in about 19 months I can sell the property to the tenant and my total profit at that point should be $43,864!!!!! Again, tax free and then I can invest the money back into more real estate!!!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...