Read Cindy's Book Titled:

  Cindy Jackson, Realtor

Realtor & Self-Directed Retirement Investment Advisor

At Asset Exchange Strategies we have clients that have set up their IRA LLC and are earning 10 to 12 percent or more by buying rental property.  Some of my clients have less than $50,000 in their IRA and are concerned with having the means to invest in real estate.  This is a creative way to grow your retirement out side of the conventional way of thinking. 

Myths And Truths

Myth #1:  You only have $30,000 in an IRA; it is not worth the set up cost of $2,500 for an IRA LLC.

Truth:  You may not realize that the average cost of being invested in mutual funds is 4.5% a year!  I have clients who have had as little as $2000 in a Roth IRA, and realized the value of the one time set up cost and how to buy real estate with a $2,000 option and turn their ROTH IRA into a $100,000 plus IRA- yes that is an exception not the rule, so we will focus on 10 -12% steady growth.  

Myth #2:  Creative investing ideas are always too risky and I don't have the skill I need to gain ten to twelve percent in my IRA.

Truth:  There is no such thing as investing without risk.  Examine the performance of your IRA or 401K over the past 10 years in the stock market if you want to get a good look at risky.

Myth #3: I need to be an expert in real estate.

Truth:  Just as you were not an expert at mutual funds you do not have to be an expert at real estate to buy and sell real estate.  By using the expertise of a real estate professional to help you identify a good area to buy real estate for the purpose of re-selling with owner financing and then re-selling the asset for you and by utilizing a real estate attorney to prepare the proper legal documents - piece of cake!

Buy a Lot or piece of un-improved real estate and re-sell with Seller financing. In Austin, where I am a real estate agent as well as a Self directed IRA Advisor, there are a number of unimproved lots in good re-sell areas that are under $30,000. I listed a lot near Lake Travis in an area where there is a water district, but the lots need septic. 

I have the lot listed at $28,000 and I have received numerous calls from individuals seeking seller financing.  These potential buyers have  $5000  – $10,000 to use as down payment and good jobs, but in the current lending atmosphere, they will not qualify for a lot loan. 

These buyers are willing to pay 10 – 12% interest on a 15-year note. The following information will map out the advantages of buying and re-selling Lots.

Advantages Of Seller Financing

Bottom line is that purchasing a Lot and re-selling it via seller-financed will generate for you a significant return on investment (ROI).

Here is the example of how you have no out-of-pocket expenses with your initial Lot purchase: