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
Date Published: Feb 20, 2009 - 5:48 am