Greg from Clearwater KS. Interested in Single Family Rentals.

3 Replies

I'd like to get started in Rental Homes in my area.  I've built a couple of houses for my family from the ground up.  I've always liked houses and construction.  We had a rental property years ago that I remodeled, but sold after three years.  I've always thought I'd get back into rentals sometimes, but I've waited TOO long!    I have lots of funds tied up in IRAs and 401Ks.  Now I'm actually retired and looking to diversify and add cash flow.  I've read about self-directed IRAs, but they seem complicated and I don't like that I can't actively participate.  Any advice or suggestions will be appreciated!

@Gregory J Guiltner

A self-directed IRA is certainly not a tool for YOU to get involved in real estate. Such plans are simply a means to allow your tax-sheltered retirement plan to diversify beyond the stock market with investments. As you note, your level of participation is minimal and administrative only.

That said, if the IRA holding a portfolio of rental homes and/or mortgage notes will provide a solid underpinning for the account principal and generate good cash flow that you can take as distributions to yourself, then it could be a good strategy to investigate further.

@Gregory J Guiltner I have been investing in Non-Performing notes with my partner for the passed two years now and I have heard that same confusion from other investors about the Self directed IRA being complicated to invest with. I have personally done partnership deals with other investors using their self directed IRA and they now know the power of this gift from the government. Like what was mentioned above, rentals/mortgage notes are a great way to earns a tax free passive income to grow your IRA. Let’s connect and I can send you info on self directed IRA companies I work with that can help answer some of your questions.

Welcome, @Gregory J Guiltner ! Sounds like you've already acquired some great experience in the industry that will be helpful in this new phase of your journey. You'll also be a great addition to the forums with all that expertise!

A few tips that may be helpful to you here on the BP website as you build your portfolio:

You can set up keyword alerts so anytime someone posts about any of the markets you're evaluating, you'll be notified. That could be a great way to find and stay engaged with local investors, realtors and opportunities.

You can also search for other investors or brokers (or financial advisors who may have keen insights into your investment questions) in your market and follow their journey on Bigger Pockets here:

Best of luck to you and look forward to following your success on BP!

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