Self Directed IRA New Construction

[John Myers]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $192,000
Cash invested: $192,000

This home was purchased with a self directed IRA owned by a LLC. This home was brand new when I purchased it. I bought it for $38,000 below their advertised price. The builder only had 3 homes in this subdivision left and was will to sell at cost. The self directed IRA paid cash and closed in a week to meet the builders goal.

What made you interested in investing in this type of deal?

The builder was desperate to get rid of the house and I purhased the home for $38,000 less than advertised price.

How did you find this deal and how did you negotiate it?

One of the builders sales reps called me and asked me to make an offer on the house. I made a low ball offer and they accepted it.

How did you finance this deal?

Cash

How did you add value to the deal?

The home was brand new, we landscaped the back yard.

What was the outcome?

Still own the house and it is a great investment.