Foundation and structural due diligence for Michigan IRA property

A crack is an observation, not a diagnosis. It may be old and stable, or it may be one visible part of ongoing movement. Fresh paint can hide its history. A repaired wall can show that someone took a problem seriously, but the repair only means something when the file explains what caused the movement, what work was designed, and whether the work was completed as designed.

That distinction matters before any property purchase. It matters more when a self-directed IRA is buying because engineering, excavation, bracing, drainage work, and later monitoring can require substantial account funds. The buyer needs enough time to understand the building and enough liquidity inside the IRA to handle the accepted scope without treating personal money or labor as an emergency backup plan.

Read the whole building before judging one crack

Start outside and work inward. Look at roof drainage, grading, downspout discharge, low areas, retaining walls, patios, driveways, porches, and additions. Then compare those conditions with the foundation walls, columns, beams, joists, slabs, crawlspaces, and floors inside. A mark in a basement wall makes more sense when the reviewer can see what is happening above it and where water travels around it.

Note the crack's location, direction, width, length, and relationship to openings or changes in construction. Also record bowed or rotated walls, displaced blocks or bricks, separation at framing connections, sloping floors, doors that will not close, uneven roof lines, and gaps where additions meet the original building. None of those observations proves a cause by itself. Together, they help an inspector or engineer choose the next question.

• Photograph each concern with a wider view and a close view that includes a scale
• Mark the location on a simple floor plan instead of relying on image order
• Ask when the seller first noticed it and whether its appearance has changed
• Compare interior findings with exterior drainage, grade, vegetation, and hard surfaces
• Identify finishes, storage, insulation, or occupied areas that prevented a complete view

Reconstruct the repair and alteration history

Ask for structural reports, repair proposals, final invoices, warranties, permits, inspection records, plans, photographs taken during the work, and any monitoring records. Match each document to the work that can be seen. A row of wall anchors may have been installed under an engineer's design, a contractor's standard proposal, or a limited repair that addressed only one section. The documents should settle which one it was.

Look beyond foundation repairs. Removed walls, altered roof framing, cut joists, new stair openings, additions, decks, masonry openings, and heavy equipment can change how loads move through a building. Compare the current layout with available building plans, permits, older listing photographs, appraisal records, and seller disclosures. If a beam or post looks newer than the room around it, ask what it replaced and who specified the change.

Permit records are useful, but they are not a condition report. A closed permit may show that an inspection occurred for the permitted scope. It does not prove that every structural change at the property was included or that nothing has happened since. An empty search result also does not establish that work was unnecessary or never performed. Take the address and parcel to the city, village, or township that controls the building records and ask the buyer's inspector, engineer, and Michigan attorney how to treat what is found.

Connect water management with structural review

Water and structure often share the same page of the file. Roof runoff discharged beside a wall, settled pavement, leaking utilities, poor grading, a high seasonal water table, or failed perimeter drainage can add pressure or soften supporting soils. Water staining and efflorescence can show where moisture has traveled, but they do not reveal the source on their own.

Ask the inspector and engineer whether drainage investigation belongs in the structural scope. A repair proposal that braces a wall without addressing the contributing water path may leave part of the problem untouched. The opposite mistake is possible too: a drainage contractor may offer a waterproofing package when the buyer still needs an engineer to evaluate movement. Give each professional the other reports so that separate scopes do not quietly contradict each other.

West Michigan buildings face varied site conditions, from urban lots with closely spaced roofs and paved yards to lake-area slopes and rural properties with long drainage paths. Do not borrow a diagnosis from a nearby house. Fill placement, foundation type, additions, utility trenches, grading, and maintenance history can differ on adjoining parcels.

Know when the inspection needs an engineer

A general inspector can document visible conditions and recommend follow-up. A structural engineer can evaluate the load path, likely causes, significance, and repair approach within the agreed scope. Ask for engineering review when the findings involve material movement, bowed walls, altered framing, failed supports, uncertain prior repairs, or another condition the inspector says is outside an ordinary inspection.

Define the assignment before the site visit. Does the buyer need an opinion about one crack, the foundation system, an addition, the whole structure, or a proposed renovation? Will the engineer review prior plans and repair records? Will finishes need to be opened? Is soil, drainage, masonry, or another specialty outside the engineer's scope? A narrow letter can be appropriate for a narrow question. It should not be mistaken for a building-wide review.

Verify the professional's Michigan license through the state's LARA license search and confirm current insurance, independence, and experience with the building type. Ask the final report to identify the areas observed, documents reviewed, limitations, conclusions, recommended work, urgency, and any additional investigation. If the report depends on a fact that remains unverified, keep that assumption visible.

Turn the diagnosis into comparable repair scopes

Do not ask contractors to price a photograph of a crack. Give them the engineer's repair details and ask each bidder to address the same quantities, materials, access, excavation, temporary support, permits, inspections, restoration, drainage work, and completion records. If one contractor proposes a different method, send that alternative back to the engineer before comparing prices.

The structural line item may be only part of the cost. Excavation can disturb porches, walks, landscaping, utilities, waterproofing, or tenant access. Interior work can affect finishes, electrical lines, plumbing, insulation, asbestos-containing material, or lead-based paint. Add design, testing, permits, demolition, disposal, restoration, and a schedule allowance rather than carrying one round repair number.

Ask what proof will show that the work is complete. That may include engineer observations, municipal inspections when applicable, photographs before concealment, material records, elevation readings, warranty documents, or a monitoring plan. A transferable warranty can be useful, but read its exclusions, maintenance duties, transfer steps, and financial limits. It is not a substitute for understanding the repair.

Budget for the condition the IRA is accepting

Put current repairs and future monitoring into the account budget before the due-diligence deadline. Include work needed to maintain safe access, prevent added damage, and restore affected finishes. Then test the remaining IRA cash against ordinary property costs such as taxes, insurance, management, utilities, vacancy, and other known capital work.

Do not assume a seller credit, insurance payment, rent increase, full occupancy, appreciation, or future refinance will solve a structural cost. None of those outcomes is guaranteed. If the scope or price remains uncertain, the buyer and advisors can seek more time, revise the transaction, or walk away under the contract terms. Calling an unknown cost a contingency does not make it smaller.

Plan occupied-property work lawfully

For an occupied rental, find out how investigation and repairs will affect entrances, stairs, utilities, parking, storage, noise, dust, and use of the dwelling. The property manager and Michigan attorney should review notice, entry, safety, temporary arrangements, lease duties, and communication before the schedule is promised. The engineer and contractor can define the work zone, but they do not replace advice about the landlord's obligations.

Apply inspection, repair, access, and accommodation procedures consistently. HUD states that the Fair Housing Act prohibits housing discrimination because of race, color, national origin, religion, sex, familial status, or disability. Structural findings should lead to decisions based on documented building conditions and qualified recommendations, not different treatment based on a tenant's protected characteristic. Michigan and local protections may also apply.

Keep the work inside the IRA's process

Ask the self-directed IRA custodian how inspection fees, engineering retainers, contractor deposits, permit charges, repairs, monitoring, and refunds must be authorized and paid. Confirm the purchaser name, invoice name, signature authority, and funding lead time before signing an engagement or work order. If the seller will perform work before closing, have the buyer's attorney define the scope, access, documentation, verification, and response if the work is incomplete.

IRS guidance identifies lending money or extending credit and furnishing goods or services between a plan and a disqualified person as prohibited-transaction concerns. Do not assume the IRA owner can excavate, brace a wall, supply materials, manage the repair without review, or pay a contractor personally and seek reimbursement later. The custodian, CPA, and attorney should review the proposed people, contracts, payment path, and owner's role before work begins.

This article is educational, not legal, tax, financial, engineering, construction, insurance, fair-housing, retirement-plan, or investment advice. No property, inspection, repair, contractor, ownership structure, or strategy is approved or endorsed by the IRS. Have your own self-directed IRA custodian, CPA, Michigan attorney, inspector, licensed engineer, qualified contractors, insurer, property manager, local authorities, and other advisors review the account, building, reports, proposed work, and transaction before taking action.

Leave the decision in one structural file

Keep the inspection report, floor plans, dated photographs, seller disclosures, permits, earlier engineering and repair records, current engineer's report, contractor scopes, estimates, credentials, insurance correspondence, custodian instructions, and closing documents together. Add a short monitoring sheet for any condition that remains. It should say what will be measured, by whom, how often, and what change calls for another professional review.

Primary sources for the account and housing portions of this review include the IRS retirement-plan investment FAQs, IRS prohibited-transaction guidance, HUD's Fair Housing Act overview, and Michigan LARA's public license search. Local building departments supply property-specific permit and inspection records. Structural conclusions belong to the buyer's own inspector, licensed engineer, contractors, attorney, insurer, and other qualified professionals after they examine the actual building.

Rennie can help identify West Michigan property and coordinate the real estate records, inspection access, and offer deadlines needed for this review. Engineering conclusions, repair design, insurance coverage, legal duties, and retirement-account decisions stay with the buyer's own qualified professionals.