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Finance > Real Estate > Completing a Deal on your IRA Part 2
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Article rating : 0.00, 0 votes. Author : Bryan Benson
Part 2: What it means to you
Say you have just completed a deal on your IRA. What does this really mean? Let’s talk about the hubbub this can create with your advisers when you do something like this.
It basically starts with someone who (for whatever reason or multitude of reasons) just cannot sell their house. Maybe it has been on the market for eight months or more, maybe even using multiple agents. It is a great house in a great neighborhood. And the owners even cleaned up the house so well when they left, you don’t even have to send your cleaning crews through. You just put a sign in the yard; put an ad in the paper, and it was sold. And in record time almost 30 days!
How are you able to accomplish this? Where do you go from here?
I want to clarify something right now before we go any further. When I am talking about selling I mean I am putting a lease option tenant in (which is the previous owners, they were trying to cash out of it).
And all that is left is for you to you make it easy to sell by making it easy to buy.
So let’s really look at this with an example. Say you take over a $220,000.00 home. You take over $119,000.00 in debt and you create a note with no payments for 30 years, or whenever you paid off the first loan, whichever came first.
Now here is where it gets exciting!
You put a lease-option tenant in there and they will pay you something (about $200.00-$300.00 a month spread) for the last 18 months or so. They actually pay your IRA. The IRA in turn collects the money and you don’t put any money into the deal. It is that simple!
The best part of this situation-there is absolutely no money out of pocket. You can close it with an attorney, subject to. There will be no money except for about $400.00 in closing costs. So let’s fast-forward 18 months later. You see your attorney, your closing attorney, at a coffee shop. He says to you, I think I just did a closing for you yesterday and you need to explain to me what you did. He said it looks like to me you just printed $40,000.00 and put in to your IRA. And you tell him; I just signed a deal and completed it with my IRA!
About the Author:
When it comes to real estate investing, I highly recommend information from Ron LeGrand. For valuable information regarding investing in homes visit http://www.RonLeGrand.com. You can also find useful investor resources in the free newsletter at http://www.MillionaireMakerNewsletter.com
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