Over the past several years, more and more clients have asked if we could recommend Real Estate investment options for their self directed plans. So, we investigated numerous turn-key Real Estate investments that are tailor made for Self Directed IRAs and 401(k)s.
We narrowed our focus to three types of investments that will fit the needs of most of our clients. In fact, we are investing alongside our clients in two of the companies. Historical returns are from 12% to 20%. Investments are both short and long term.
Following are brief descriptions of each program:
Cash Flow Homes – Florida, Georgia & Ohio
These are “no-hassle” residential properties that offer a 13% to 20% return on investment.
You have two options for investing: 1) be the lender for the acquisition and rehab of the property and earn up to 20% interest by holding a promissory note secured by real estate or 2) purchase the property after rehab and hold it as a rental with turn-key property management.
The investment team includes:
- Realtors who specialize in foreclosures, short sales and bank owned properties.
- Rehab specialists and certified technicians who are focused on getting the property into rentable or salable condition.
- Property managers who understand they are the key to keeping the asset performing.
- Title companies and experienced attorneys who can expedite sales at a fair cost.
The company is owned by a Kent State graduate who holds an MBA and has over 25 years of corporate marketing experience, including 12 years as an Analytic Strategist for IBM.
Click here for the Fact Sheet on this program.
Model Home Leasebacks – Major Metro Areas of Texas
In order to free up capital to build homes within a subdivision, builders are willing to sell their model homes and then lease them back at very attractive rates.
These model leasebacks are extremely rare since builders have cut back on new development over the past year. Cash flow is estimated from $600 to over $2200 per month.
Tenant is the builder and already in place with leases! Some of these homes come with a “resale agreement” from the builder. Use your Self Directed IRA or 401(k) as an all cash lending resource or obtain a non-recourse loan to leverage the purchase. Investment: $159,00 to $300,000. Returns: 12% to 20%.
Click here for the Fact Sheet on this program.
Interim Construction Lending – Texas
Because of tight lending restrictions by banks, builders have had to go to private sources to build residential homes for buyers who are pre-qualified for a mortgage and have entered into a purchase and sale agreement for the property.
In essence, with the Construction Lending program you become “The Bank”. The process is turn-key with everything in place, including legal documents to support the loan and put you into 1st lien position.
Investment: $77,000 to $110,000. Typical term is 6 months, at which time you can reinvest or not. Returns: 14% to 18%.
Click here for the Fact Sheet on this program.
For detailed information on these investments, please contact us by phone or fill out the form on the right side of the page.
