Real Estate

Flipping Fixer-Uppers

Story Published on May 22, 2008 ⋅  Email this Story ⋅  Print this Story ⋅ Post a comment ⋅

One of the favored investments of Self Directed IRA account holders is buying and selling fixer uppers. Fixer uppers allow you to maximize your investment via property flipping. If you choose to flip properties via your Self Directed IRA account, following are three things to keep in mind.

3 Ways to Maximize Your Self Directed IRA Profits When Buying and Selling Fixer Uppers

For those who are patient, flipping fixer-uppers can provide a phenomenal return on for a Self Directed IRA portfolio. Careful research is required to make sound decisions when flipping properties, but, that is the case with any investment. If flipping properties is how you choose to maximize your retirement income via your Self Directed IRA account, keep the following in mind.

Property Location: Anytime you invest in real estate, this is always the first rule of thumb. Even novice real estate agents will tell you, location should be compromised when investing simply because while you can change what the property looks like, you can’t change the surroundings it sits in (at least not in time to recoup your investment).

Another rule of thumb when flipper fixer uppers: Keep the needs, wants and desires of the buyer in mind. Look in neighborhoods where property values are on a steady climb, where buyers want to purchase because the schools are good, where city government is active and present, etc

Renovations: Choose properties that need as little work as possible done on them. This can be tricky however, because some properties show terribly. But, you have to be able to look beyond the nasty toilets and overgrown yards to what a property could be. Many investors lose out on excellent deals because they can’t see past the initial abysmal look of an investment property. Cultivate this skill, and you’ll pick up deals many overlook.

Get to Know a Rehab Specialist: A rehab specialist will be able to tell you whether or not the property you’re thinking of buying is a good deal or not. For, they don’t consider how “pretty” a property is, but assess its bones. They look at those things that can cost you dearly, eg, the electrical wiring, the plumbing, the insulation, etc. Cosmetic fixes are easy and relatively cheap to fix. Maximizing your Self Directed IRA investment depends on the knowledge of someone who knows the difference.

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