5 Lessons Learned from Rehabilitating Properties—by Robin Moffitt of Gold Star Realty

It’s a very profitable time to be involved in real estate, so think about modifying your business plan to include rehabilitation of properties for profit. I have been buying properties at 50 to 60% of their value and rehabbing them, which require a range of repairs from light cosmetic touch-ups to a complete remodel. I’ve managed to recreate my portfolio with significant growth in equity and cash flow. Throughout my experience rehabbing homes for resell, I’ve learned a few lessons I’d like to share with you:

  1. You can buy property at significant discounts without feeling guilty
  2. There is private money available to fund those with no credit
  3. You should not be greedy when you resell your property—I target 5 – 10% discounts on fair market value.
  4. Cash will start flowing—expect $150 – 500 per property on average. You’ll earn a guaranteed 12% with a couple of points up front on a property that has been completely rehabbed.

For realtors who were counting on their real estate portfolio for retirement and were hurt by the downturn in the housing market, this system will allow them to create cash flow and equity build up quickly.

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Traditional approaches to retirement investing lead many otherwise savvy investors to overlook one of the most lucrative wealth-building strategies available: self-directed tax-free and tax-deferred investing in alternative assets. Investors in the know have learned, and you can too, that under your direction, your self-directed retirement plan can invest in real estate, notes, limited partnerships, and many other assets. With the great tax advantages provided by a self-directed IRA or 401(k), as well as the wider range of possible investments, you can potentially build wealth and secure your future much more effectively than you can through traditional plans. Mountain West IRA has been showing individuals and small businesses how to take advantage of self-directed retirement plans for over a decade. With a knowledgeable staff and our clients’ best interests in mind, we offer the outstanding customer service that only an independently owned and operated administrator can. The owners have combined experience in the IRA and retirement planning field of 48 years. Our accounts provide investing freedom and simple processes to allow you to maximize the effectiveness of your investments. For more information, please visit our frequently asked questions.
This entry was posted in Individual Retirement Accounts, IRA, Non-traditional IRA, Real Estate Investments, Self Directed IRA. Bookmark the permalink.

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