By J.P. Dahdah, Founder & CEO of Vantage
Distressed commercial properties provide great opportunity and potential for high investor returns—that is, if you know how to identify a good deal from a bad one.
Your focus on real estate in an IRA must be on properties that will give you the best value for your money. In these times when foreclosures are at an all-time high, there can be a number of opportunities for you to buy commercial buildings to fix and sell or to rent and hold until your prospects improve.
A well-conducted deal begins with extensive research and due diligence. To guide you in your process of selecting real estate in an IRA, here are the top three things you should look out for:
1. Target strategic locations that offer positive future prospects. Don’t depend on short-term price appreciations to dictate your income—it doesn’t work all the time. So expect to hold on to your asset a little bit longer and search for up-and-coming neighborhoods for fixer-uppers.
2. Take time to review land use and entitlements. Investigate existing entitlements as well as zoning issues that will affect your rights as a purchaser. You maybe looking at a cheap property but the road and utility capacity, legal moratoriums and other similar issues may affect the asset’s income generation.
3. Put a premium on physical condition. Consider the time, effort and money you will need to spend to rehabilitate the property. Be sure to know your numbers by inspecting improvements, deferred maintenance, building or health code violations and environmental reports.
By conducting proper inspection and property analysis for your real estate investment for your IRA, you minimize the risk of buying the wrong properties!
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or Info@VantageIRAs.com.