“For years I’ve been hearing the buzz about Self-Directed IRAs. As a professional in the real estate industry, I found it frustrating that so many realtors, investors, CPAs and attorneys couldn’t grasp the concept and provide me with the necessary knowledge to take advantage of this investment vehicle, until I met the fine folks over at Midland IRA.
Like so many Baby Boomers, I’ve saved over the years investing in my 401(k), traditional and SEP IRAs. I was disappointed in the performance of my investment portfolio and felt like I really didn’t know what I was doing. I also realized that the past three years has been, and continues to be, the perfect time to take advantage of lower prices in real estate (although I didn’t have enough liquid cash to invest).
Inside my Midland account I currently hold investment properties in Scottsdale, Arizona. The purchases are considered “cash” deals and my only costs are homeowner association dues, real estate taxes, insurance, (all amazingly cheap in AZ), and maintenance. I am currently renting my unit until the market and supply of seasonal rentals diminishes, and then I plan to rent it out seasonally. I anticipate taking advantage of the cash flow and earn at least a 7 percent return (based on the $150,000 purchase price). The only downside or unknown is the potential repairs and maintenance. I’ve been an account executive for Home Warranty of America for 12 years so I plan to cover my property with our home warranty, which will either repair or replace my systems if they break down avoiding costly expenses.
What really excites me about this opportunity, though, is not only the cash flow, but when I retire, I have a property in a nice sunny, warm spot to visit or live. Also, when I do sell, I will realize the appreciation on the property because I purchased the property at the bottom of the market. I really believe if everybody knew that they could invest in real estate and put their retirement funds to work for them now, in today’s market, it would stimulate the economy. I just wish I had enough cash in my self directed IRA to buy 10 properties!”
Liane has been a Midland IRA client since 2010 and her IRA owns rental property in Scottsdale, AZ.