I recently received a telephone call from one of my clients asking about doing a “Turn Key” property transaction in his IRA.
Many investors, through real estate investors association meetings, seminars and the Internet to name a few, are being marketed to by companies that offer a turn-key solution to holding real estate, whether personally or in a self-directed IRA. These companies state that they will take care of everything and do all the work for you. They find the deal, buy the house, fix it up, get a tenant in place and then manage the property for you. You or your IRA simply receives a check every month.
Yes, a self-directed IRA can invest in companies that offer turn key solutions to real estate.
Since IRA Innovations does not endorse or offer any investment advice or recommend any companies or product providers; we suggest that you the investor seek the guidance of a real estate attorney or financial advisor in the market where the “Turn Key” properties are located. In most cases these will be in a different state from where you live. Allow your advisors the ability to do the due diligence that is necessary on your behalf, which could include ascertaining true property value, realistic rental prices and sound returns on your investment.
The idea of simplification, a company doing everything so you and your IRA won’t have to, sounds great. We are sure there are reputable companies out there offering value, but unfortunately we are also sure there are companies that are not true to their word.
Using caution, as in anything else in life, is appropriate here. The old adage “If it is too good to be true…”certainly may apply. Just make sure you and your self-directed IRA know what you are buying; after all it is your money. Taking control of a self-directed IRA to grow your financial net worth and enjoy a comfortable financial retirement is what we all seek. This opportunity is yours to evaluate; don’t allow others to vote on your money!