My Second Property was purchased in a Self-Directed IRA

[Account Closed]

Investment Info:

Single-family residence buy & hold investment in Perris.

Purchase price: $108,500
Cash invested: $45,000

3 bedroom, 2 bath

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

My cousin was using a self-directed IRA to buy and flip at the time. She showed me which company she was using as well as the bank to get the non-recourse loan.

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

I was working exclusively with one realtor by now.

How did you finance this deal?

So this is a joint deal. My husband at the time and I bought it 50/50 in our self-directed IRA accounts. We financed the deal with a non-recourse loan which requires 40% down, certain amount of positive cash flow and a certain percentage of reserves in ALL IRA accounts. We used NASB.

What was the outcome?

We still own the property. The rent has gone from $950 the first year we bought it to $1550 currently. The home is currently worth $300,000 and we have started the refinance process in order to purchase another property each individually.

Lessons learned? Challenges?

This is the property that pushed me to realizing that a good property manager was well worth the 10% they charged! I hired iehouses and have never looked back. They actually only charge 8% and that includes landscaping. The tenants don't even know my name, let alone have my phone number.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I work exclusively with Patricia Campos.