Jim Hitt, CEO of American IRA-A National Self-Directed IRA Provider, Answers A Frequently Asked Question…Is Retiring Through Rental Real Estate Wise?
Jim Hitt, CEO of American IRA-A National Self-Directed IRA Provider, Answers A Frequently Asked Question…Is Retiring Through Rental Real Estate Wise? Jim Hitt has over 29 years experience investing in real estate and is expertly qualified to field this important question.
Jim Hitt says “Retiring Through Rental Real Estate can be a wise decision if you are careful about your investments. There are some very important things you must do to ensure your success:
- Do your ‘due diligence’ before you make your purchase
- Always consult with professionals when putting together a deal
- Use the real numbers (sometimes people are tempted to use numbers based on the profit they ‘think’ they can make instead of looking at the actual profit the investment is already making)
- Know your market (many investors make the mistake of buying a property that is listed at a great price only to find out the price they paid is much more than the property is worth in that location).
- Remember not to cut it too close (A common mistake investors often make is not keeping enough cash in reserve. You have got to keep cash on hand for repairs, months where you have a vacancy, taxes, insurance, and other expenses that may arise.)”
One thing people should keep in mind is that ‘retiring’ through rental real estate may or may not be fully retiring. People need to decide the level of involvement they would like to have in their retirement years with these rental properties. In this light, they can decide to be hands on landlords during their retirement years or they can decide to employ a property manager if they prefer to have a more passive role.
The other thing that people should keep in mind is that there are tremendous benefits to using a self-directed IRA or self-directed 401(k) as the funding source for rental real estate properties. The most significant benefit is tax-free or tax-deferred income streaming into their retirement account.
Jim Hitt concludes “There are far too many benefits and scenarios to include in this press release. Having said that, we are currently offering free 1-on-1 consultations and free educational videos to anyone who would like to learn more about the benefits of investing in rental real estate with self-directed IRAs and self-directed 401(k)s.”