By J.P. Dahdah, Founder & CEO of Vantage
New investors’ ups and downs of IRA investment in distressed real estate properties don’t seem like a good idea. Contrary to its name suggests distressed property investing offers a high potential for income and long-term investment returns.
What are distressed properties?
These are properties that are under a foreclosure order or are advertised for sale by the mortgagee. They are usually offered at prices significantly below market value. Statistics show that about 30% of the home sales in the U.S. come from the distressed market.
This property type provides attractive returns for your real estate IRA because they are being sold at a considerable discount. Homeowners often sell them to meet their debt payments and avoid foreclosure. Mortgagees also offer them for sale to convert their security into cash, while banks sell foreclosed properties to improve their financial liquidity.
Distressed property investors earn from their portfolios by rehabilitating or renovating the properties and selling them at reasonable margins. You can also have the option to lease them and generate regular rental income.
The idea is to buy low and sell high for your IRA investments in real estate. And if you know how to identify and manage a good investment, your property will go a long way from being “distressed” to “de-stressed.”
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or Info@VantageIRAs.com.