Feed: Self Directed IRA Investing - AggScore: 45.5

Self Directed IRA Investing

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Investor Don Pettit is always looking for opportunity, especially in today’s distressed Northern Virginia real estate market. Don and his business partner, contractor Rick Steeby, look for houses to rehabilitate and resell, typically with a holding period of less than six months.
Recently, Rick received a call from an elderly widow desperately looking to dispose of a dilapidated house. The house had been condemned and was about to be sold to satisfy the county’s judgment. The homeowner – facing a ninety day court order to renovate the house or be severely fined -- was at her wits end.

Fortunately Rick and Don had a plan to help her. They worked with the owner to get a court order enabling them to purchase the house, which they plan to tear down. They then have the option to sell the lot or rebuild on the now vacant lot. Don and Jack were able to move quickly partly because of the unusual structure of Don’s self directed IRA account, which Don used to make the purchase.

Don uses Security Trust Company (STC) in Hagerstown, MD, as the Administrative Manager of his self-directed IRA. STC created a special purpose limited liability company for Don’s IRA, thereby enabling him to make opportunistic investments. STC wired Don the cash he needed to make the purchase the same day he requested it and took care of all of the back-office details.
Don and Jack plan to make a good profit on their investment, and Don’s share will be tax deferred as a part of his IRA.

And the property owner? She put cash in her pocket rather than having to spend money she could not afford to “rehabilitate” a property that needed to be torn down.

This is just one more success story from the clients of Security Trust Company. To learn more about self directed IRA investing or similar success stories, please visit www.SecurityTrustCompany.com