Lake Front Property Investment
As with oceanfront properties, lakefront properties benefit from man's age-old desire to live near water. It seems to be ingrained in the DNA of a majority of human beings. Living near water also has its drawbacks, however. Flooding can be a serious problem and the damage from flooding can be catastrophic. It is telling that insurance policies covering flood damage are far less numerous than for any other type of damage.
On the plus side, all of these risks are known and can be circumvented with a little planning. New structures can be built that resist flooding by being built on stilts, allowing for adequate drainage of flood waters, or with other protections. Though this costs money up front, it increases the value of a property and the rental prices it can collect. Potential renters will be pleased to know that their possessions will be protected.
Such precautions assume that you want to hold onto a property, however. If your plan is to flip the property, you need not worry so much about retrofitting or rebuilding. If the property is in the midst of a host of other properties that have already had such improvements made to them, though, your hand may be forced if you want to receive top dollar. All of this should be part of your planning, if possible, before you make the purchase.
Why Renting or Flipping Requires a Self-Directed IRA
Traditional IRA custodians that allow IRA funds to be used for real estate transactions usually require you to hold the property for a
number of years. (They also usually make a killing with the application of fees on such transactions.) With checkbook control of a self-directed IRA LLC, you can buy and sell whenever you wish (reaping the profits of flipping real estate) and avoid most of the custodial fees associated with real estate transactions.
Written By Scott Janko, The National Association of Financial and Estate Planning (NAFEP)
For more details on the Self Directed IRA -ICOSM Click Here.