A unique sell of house/Carlos Pueblo

A unique sell of house/Carlos Pueblo

I had been called to be present at a unique sell of house, one at a singing

contract day, and the other at the closing. The seller, my insured asked me

for a favor. After a deal went sour with a friend, she selected to respond a

flyer of house buying professional and sealed the deal. She wanted to know

if the contract was genuine. The professional indicated that he would purchase

the house as the current condition with a steep discount, about 40% from the

peak; however, paying all the closing cost except prorated real estate tax and

homeowner association fee. I didn’t ask why she selected this way to sell her

house to avoid my opinion getting involved. The buyer has been in this business

for many years and indicated that some time is hard to get the funding from the

bank.

At a delayed closing, I noticed that the purchase was funded by a self- directed

IRA account via a specialized bank according such IRS code. I have been an

insurance agent and security broker dealer for years of selling individual IRA.

Mostly, I had had some traditional IRA set up with mutual funds, common stocks

, and occasionally annuity as the investment vehicles and forgot why I didn’t have

such experience of self-directed IRA in real estate investment. The buyer pro invites

to attend his seminar and learn more. I think that I am doing fine with my IRA in

mutual funds lately and ready for the 70 ½ mandatory minimum distribution soon.

The delay was really from the attorney’s draw of the definition of buyer, the seller’s

was quite simple clear title and sole ownership.

I have thought of it for two days the reasons why skip the trade during my time to

sell IRA this way. I think that as describe, the customer must be familiar with the

real estate business first, secondly I was not familiar with the IRS codes and the

general security companies exclude such products on the market. It is a security

product indeed yet not popular with the general public for one reason and the

safety of such person who is in charge of such investment is very vital. He told me

the profit margin was 7% to 12 % which was better than bank rate of return.

Five years ago, we sold our old house to a builder directly in just one day. The

builder tore down the old house and built a mansion out of it with three times

of our selling price and that was at the good time of Houston real estate. We felt

so sorry for our sale a little bit early and we should wait for one more year to get

some higher offer until Hurricane Harvey. That entire subdivision was flooded due

to a release of water from the upstream of Buffalo Bayou.