Investors Intrigued with Buying Hurricane-Damaged Homes in a Real Estate IRA

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Jim Hitt of American IRA typically speaks about traditional real estate investing through a Real Estate IRA. But recent hurricane damage has changed the topic over at the American IRA blog.

American IRA CEO

American IRA CEO, Jim Hitt

Investors should do due diligence on hurricane-damaged property just like they would any other property. But some extra questions should be asked, including whether or not the property was flooded and how high the water ultimately went.

Jim Hitt of American IRA is usually the type to talk about traditional real estate investing, such as buying rental property through a Real Estate IRA. But recent events—thanks to devastating hurricanes across the U.S. and Caribbean—has changed the priorities of some investors. Now, the question is whether or not it’s a good idea to buy up hurricane-damaged homes through a Real Estate IRA.

Jim Hitt took to the blog at http://www.AmericanIRA.com to discuss these strategies. According to Jim Hitt, investors should do due diligence on hurricane-damaged property just like they would any other property. But some extra questions should be asked, including whether or not the property was flooded and how high the water ultimately went. Mold damage and expenses for mold remediation should also be a high priority for anyone investigating hurricane-damaged homes as a potential investment strategy.

There is indeed opportunity for Real Estate IRA owners, argues Jim Hitt, because a devastating hurricane like this can lead to lower property values on damaged homes. An investment into the home can quickly turn around its price, so long as an investor makes the proper investment from the beginning.

“Although there is a lot of opportunity here,” says Jim Hitt, “investors still need to be wary. There’s a reason many of these homes can sell for bargain prices. Many of them are only worth bargain prices. The challenge to real estate is finding the diamonds in the rough, and even though a hurricane has altered the situation here, the same principles still hold true.”

Jim Hitt recommended looking into the background of a specific property to understand which repairs have been done and whether or not there was structural damage to the property. A quick “turnaround” investment through a Real Estate IRA will not be successful if there are all sorts of unforeseen issues that aren’t looked into from the outset.

The blog post at http://www.AmericanIRA.com is full of tips for those looking to have an impact on hurricane-ravaged areas with their Real Estate IRA. Not only can these opportunities turn profits for investors, but they can provide incentive for individuals to come in and assist with repairs.

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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