Are you interested in maximizing your self-directed IRA’s return on investment rates? If so, you’ve come to the right place! Two of the most prominent real estate IRA strategies include Fix and Flip and Buy and Hold. Both of these methods have the potential to provide above-average returns, but their individual paths to profit differ in both theory and execution.
Let’s start with Fix and Flip: this is involves purchasing a property, enhancing it, and then reselling it for a higher value. According to Position Realty, the average Fix and Flip investor earns a 10-12% return on investment. This respectable rate comes with somewhat of a downside however: profits are generally lower than they could be otherwise since only certain properties are suitable candidates, driving up expenses.
Buy and Hold differs in a few main ways. For example, instead of purchasing a property on a short-term basis, you’ll “hold” the property for a given amount of time and wait for it to appreciate in value. You can even rent out the property to help you pay for its expenses if you like. In fact, rental is one of the more profitable aspects of this strategy! Your selection of possible properties is generally broader too since you’re not as concerned with finding prime Fix and Flip candidates.
With consistently rising property values, a Real Estate IRA is an excellent option for today’s market. Merely having the choice between Fix and flip and Buy and Hold is yet another example of how owning a self-directed real estate IRA is a respectable decision for the serious investor.
If you have any questions about opening a new account, contact us at 1-866-7500-IRA(472) or firstname.lastname@example.org. If you’d like to transfer a real estate IRA account, contact us at 1-866-7500-IRA(472) or email@example.com