American IRA, LLC CEO, Jim Hitt, thanks and congratulates another successful self-directed IRA client. Using self-directed IRAs this investor was able to increase their net worth by $168,000 and their monthly cash flow by $1,550!
American IRA, LLC respects the privacy of their clients; therefore, the name of this successful client will be withheld.
Jim Hitt extends his appreciation and congratulations, “First and foremost, I would like to thank you for allowing us to share your success story. Through hard work and dedication you created income and wealth for you and your family. And, perhaps more importantly I would like to publicly congratulate you on your success!”
So, what is all the fuss about? How did this client achieve such success?
First and foremost this client formed a plan and stuck to it. The plan was to spend 2 hours every single week working investments by studying Zillow, MLS, and county records and through weekend drives looking for ‘for sale’ signs and properties that looked neglected. Neglected properties are usually an indication that the current owner has more on their plate than they can handle and thus they may potentially sell the property at a discounted rate. Secondly and of equal importance, this client kept their eye on their goal at all times; their goal to build enough cash flow so that when they had children, they could ‘stay home with their babies’.
Cash at Closing and Instant Equity
They purchased a 3 bedroom/2 bathroom, 1400 square foot home via a short sale. They borrowed $55,000, incurred $800 in repair costs, and paid $50,000 for the home…this netted them $4,200 in cash at the closing. The market value of the home was $90,000 which netted them $35,000 in instant equity upon closing ($90,000-$55,000).
The monthly rental income was $875 and their monthly expense were $665 which left them a net monthly income of $210.
Cash at Closing and Instant Equity
They purchased a 3 bedroom/2.5 bathroom, 1600 square foot home well below market value from a wholesaler who was not aware of the market in that area. They borrowed $66,000, incurred $1,500 in repair costs, and paid $60,000 for the home…this netted them $4,500 in cash at the closing. The market value of the home was $110,000 which netted them $44,000 in instant equity upon closing ($110,000-$66,000).
The monthly rental income was $1100 and their monthly expense were $655 which left them a net monthly income of $445.
They purchased a 3 bedroom/2 bathroom, 1200 square foot home up for bid. There was a lot of competition but they won the bid. They borrowed $56,000, incurred $2,000 in repair costs, and paid $56,000 for the home…this cost them cash out of pocket of $2,000 at the closing. The market value of the home was $90,000 which netted them $34,000 in instant equity upon closing ($90,000-$,56000).
The monthly rental income was $1,000 and their monthly expense were $503 which left them a net monthly income of $497.
They purchased a 3 bedroom/2 bathroom, 1600 square foot home. The home had undesirable tenants and was showing poorly. These investors saw the value and got the deal! They borrowed $65,000, incurred $2,500 in repair costs, and paid $70,000 for the home…this cost them cash out of pocket of $7,500 at the closing. The market value of the home was $120,000 which netted them $55,000 in instant equity upon closing ($120,000-$65,000).
The monthly rental income was $1,100 and their monthly expense were $702 which left them a net monthly income of $398.
These investors netted an amazing monthly cash flow of $1,550 ($210+$445+$497+$398) and instant equity of $168,000 ($35,000+$44,000+$34,000+$55,000). Given that the Social Security Administration says the average monthly social security benefit for a retired worker is about $1,230 per month…it is easy to see that this investor is already ahead of the curve!
Jim Hitt concludes, “These clients did an amazing job. They kept their goal in mind and kept the deals flowing; after all, deal flow is the key to success in real estate.”
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.