suggest a 12-month holding time. If it is a major project, it will entail permits from the municipality, and we have no control over that process. Permitting times have more than doubled in some municipalities due to the pandemic, the number of permits being issued, and other reasons, plus, you also don’t control when the city inspector will get out there. Sometimes, if you miss them, it may take another two weeks before they come back, and you can’t move forward without passing that particular inspection. Understand that even with a smaller renovation (permits may be required) always check. 5  If you don’t have enough capital to purchase and renovate a property, you can use private or hard money. The key is to make sure the loan is a non-re- course loan. 6   Keep in mind that you cannot have a direct benefit when using your self-di - rected account. Make sure to speak to your self-directed advisor. 7   The profits you make go directly into your self-directed account and depend - ing on what type of self-directed vehicle you have, the gains/profit on that deal are tax deferred and you incur zero capital gains tax. Again, always speak with your tax professional or CPA. If you are looking for a way to grow your self-directed account as a pathway to becoming a more passive investor, flipping could be a great way to do that. It is a strat - egy that I have personally used and experi - enced positive results. Just understand with any investment you make, there can be a profit or there can be a loss. Make sure you do your due diligence, ask for some help from a seasoned investor if you want a sec - ond pair of eyes on the deal, and understand being nervous is just a part of the process. Remember also that if you have a traditional IRA or 401K, you will need to find a company that deals specifically with setting up your self-directed account. •

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