What, where & how to buy a $100,000 cash investment property?

[Mike Faulkenberry]

Hi BP! I am looking to invest $100,000 of a self-directed IRA in a income/investment property. My questions are:

1) what is the best strategy? I would like to buy and hold and have the rent income obviously go back into my IRA account.

2) What type of building is best? Industrial/warehouse, commercial, retail, or residential?

3) Where is the best place to purchase right now (depending on the type of property)?

I really want to start having this money work for me and I’ve been a little lost/scared to invest it. Any advise would be greatly appreciated.

[Lee Ripma]

@Mike Faulkenberry

Here is my two cents on self-directed IRAs owning one myself and having had them invest in syndications I was involved with: they are far better for lending (debt positions) then for owning property (equity positions). When you buy a property or invest in syndication and you use leverage you get his with UBTI tax. Look it up. It's a pain to deal with and it takes away a lot of the advantages of using a self-directed IRA. If you lend there is no leverage so you just get to keep the gains tax free. So I would tend to find someone who is flipping or BRRRRing that needs short term cash for reno and lend to them at 10% or thereabouts. So I'd focus on finding a person you can trust and partner with and try to churn that cash over and over to make it grow. Good luck and keep us posted on what you do with your IRA.