Jim Hitt Details the Special Concerns for Vacant Properties in Real Estate IRAs

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Investors looking for value often like to use Real Estate IRAs to store plenty of funds in their retirement accounts. But what if the property is vacant? Jim Hitt of American IRA explains what real estate investors need to know.

American IRA CEO

American IRA CEO, Jim Hitt

Vacant properties are susceptible to a range of problems, including vandalism, crime, and even vagrancy. Squatters can also move in on a vacant property, which in turn creates a whole mess of legal troubles for the owner(s) of said property.

With so many investors flocking to Real Estate IRAs to build their retirement wealth, it’s clear that this investment strategy has a lot of upside. But what if the real estate held in an IRA is vacant? Jim Hitt of American IRA in North Carolina recently took to his blog to explain what investors need to know about handling vacant properties within their IRA.

Jim Hitt starts with basic protection. Vacant properties are susceptible to a range of problems, Jim Hitt argues, including vandalism, crime, and even vagrancy. Squatters can also move in on a vacant property, which in turn creates a whole mess of legal troubles for the owner(s) of said property. Jim Hitt points out that investors will naturally hold insurance on their property since they’re serving as landlords, and this insurance can go a long way in maintaining the long-term quality of a property, even while vacant.

According to Jim Hitt, insurance experts will advise that specialized vacant property coverage be held to prevent a number of issues with the property. Jim Hitt stresses that maintaining the value of a property even while it’s vacant will be integral to its long-term returns. A property that gets vandalized and damaged won’t only result in lost funds, for example—it will also result in lost time while the property manager seeks a new renter. This lost time is time that could otherwise be spent generating returns for the Real Estate IRA.

“A vacant property is never a good thing,” says Jim Hitt. “But even more important is that Real Estate IRA holders don’t let the vacant property become a bigger problem due to all of the risks I mentioned in the article. With the proper insurance coverage, owners can make sure that they have everything they need for their property to make a quick recovery and remain viable for renting out. This gets investors back to earning the returns they expected when they initially made the investment.”

The article, posted at http://www.AmericanIRA.com, stresses that even though the premiums will go up for additional coverage, this investment can yield long-term rewards. Maintaining a property’s quality will help to ensure that it doesn’t remain vacant for long.

About:

American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

As a self-directed IRA administrator they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville, NC.

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