MN Mortgage Rates: Self-directed IRA funds being used to renovate properties
By: Josh Manier
Feb. 10 (FreeRateUpdate.com) MINNESOTA - Years ago self-directed IRA’s were merely a fringe group of entrepreneurial minded individuals looking to actively choose how their retirement funds were invested. Traditionally, most investors purchasing real estate in a self-
directed IRA would purchase a cash flowing rental property. With the glut of cheap foreclosed homes on the market, some have turned to their self-directed retirement accounts as a way to pay for the purchase and renovation of a property. The property can then be rented or resold for profit. Recently here in Minnesota, two private lenders agreed to offer renovation financing for self-directed IRA holders, allowing more capital for real estate investing. For example, if a client is purchasing a home for $100K and they need $60K to renovate the property, they can put down $100K from their retirement account to purchase the property and then the remaining $60K in renovations can be funded as a renovation loan, allowing individuals to utilize their retirement assets even though they don’t have enough cash to fund the entire project. While some people are not comfortable utilizing retirement funds for this purpose, it is most often a good fit for experienced individuals who have successfully purchased and resold real estate in the past. For more information about self-directed IRA’s and self-directed IRA loans please visit http://www.islandviewmortgage.com/