CHARLOTTE, NC / ACCESSWIRE / July 10, 2019 / A short sale occurs when one or more lenders on a piece of real estate agree to accept less than the amount owed on the home. That can help avoid a foreclosure, but it's not always the ideal situation. For investors, however-especially those using a Self-Directed Real Estate IRA-the idea of buying a short sale home like this can be an intriguing way to grow retirement wealth.
According to a recent post at American IRA, Louisiana and Mississippi lead the country "with the greatest percentage of seriously underwater homes," at 20.8 percent and 16.9 percent respectively. Other states, like Arkansas, Illinois, and Iowa, also come in with high rates.
That could represent an opportunity for those using a Self-Directed Real Estate IRA to partially fund their retirement. In the case of a short sale, an owner might be motivated to move on with a home even despite a low price simply because the situation has become untenable.
However, as the post notes, "buying a home in these areas for Self-Directed Real Estate IRA accounts can be tricky." That's because it can not only take time to get the lender's approval, but secondary lienholders such as home equity lenders may also need to agree to the sale.
However, the option is out there for people who know real estate well. "Investors who really understand real estate can find opportunities where others cannot," said Jim Hitt, CEO of American IRA. "And the potential to buy a short sale home within a Self-Directed Real Estate IRA can be a powerful way to build wealth for those who understand that there are downsides as well."
The post recommends working with an experienced local agent, especially for those who are new to the concept of the Self-Directed Real Estate IRA and do not know local lenders in the area. Experienced agents could help smooth out the process and make the purchase worth the investment.
American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC.
SOURCE: American IRA, LLC