American IRA CEO, Jim Hitt
“It’s a great idea to buy a foreclosure property at a discount and turn around and sell it for a tremendous profit...
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RALEIGH, N.C. February 13, 2018
Holding real estate within an IRA is not news to some, but the idea of holding foreclosure properties within a retirement account can be foreign territory to many investors. Recently, Jim Hitt of American IRA in North Carolina released a blog post explaining the positives and negatives of handling foreclosure properties within a Real Estate IRA.
One of the most obvious positives, points out Jim Hitt, is the fact that many foreclosed properties can be acquired for a discount. Because the properties were foreclosed upon, they’re often available for a fraction of the price they would have sold for in normal circumstances. This means that there are potential bargains in the world of foreclosure investing—which in turn can make for tremendous growth within a Real Estate IRA, says JIm Hitt.
Jim Hitt does point out, however, that the margin for error can be smaller than many investors think. “It’s a great idea to buy a foreclosure property at a discount and turn around and sell it for a tremendous profit,” Jim Hitt says. “In fact, that’s the whole idea in the first place. But as the old saying in real estate goes, the profit is made on the sale. So it’s up to investors to really understand their markets and what a foreclosed property could potentially sell for.”
The advantage of using a Real Estate IRA in this kind of transaction comes with tax protections—but it also means there are a number of rules and regulations that have to be met. The real estate should be an investment vehicle, not something that an investor uses for personal use. JIm Hitt advises those thinking about foreclosure investing to understand these rules ahead of time so as not to go too far down one path of expectations, only to find out such transactions are prohibited.
For more information about the Real Estate IRA and foreclosure properties, visit the blog at http://www.AmericanIRA.com. Interest parties can also contact the Self-Directed IRA administration firm at 866-7500-IRA.
American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a self-directed IRA administrator they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville, NC.”