Читать книгу Flipping Houses For Dummies - Ralph R. Roberts - Страница 72

Newcomers are often attracted to real estate investments because they may result in a higher percentage return than stocks or bonds. In addition, real estate gives you more control over the performance of your investment. In the case of flipping houses, if you do it right and don’t fall victim to a burst housing bubble, you stand to earn 20 percent or more on each house you flip. You’re not likely to see that sort of return on stocks and bonds!

Because real estate is an investment opportunity that’s as legitimate as stocks and bonds, some real estate investors are choosing to structure their IRAs (or at least a portion of them) around real estate investments. In other words, you can convert your IRA into a self-directed IRA and use the money in your retirement account to fuel your flips. Consult your accountant and your personal finance specialist to determine whether this option is one you want to explore and to work out all the details if you choose to go this route. It’s risky, but so is the stock market.

I use a company called Equity Trust (www.trustetc.com). The people there are helpful, offer webinars, and try to educate you on how to use a self-directed IRA as a tool to buy and flip real estate.

Another way to use your retirement income to help fuel a flip is to borrow from it to obtain enough cash to make a down payment on a loan to fund the purchase and repairs. For example, if you are applying for a $100,000 loan to flip a house and are required to put 10 percent down, you can borrow $10,000 from your retirement account to use for the down payment. You need to make monthly payments on that $10,000 as you would for any loan, but then you could pay off the loan (reimburse your account) after you sell the property. The interest is paid to your retirement account, and you’re not required to pay taxes or early withdrawal penalties on that $10,000, so you’re really not losing anything as long as you pay back the loan in full. Consult your retirement plan manager or financial advisor for details and to explain any possible ramifications of borrowing from your retirement account.