Equipment Leasing Investing with a Self Directed IRA Custodian
Equipment Leasing Investing with a Self Directed IRA Custodian
Categories: Self Directed IRA Custodian Tags: About, directed, Equipment, important, Information, investing, leasing, self, self directed ira custodian
IRA Real Estate Investing for the Savvy Investor
What is self directed IRA real estate investing for the socially conscious? What it is is a way to rebuild downtrodden neighborhoods across the country and double your return on investment. By involving the cities themselves along with investors with self directed IRA’s, the potential for successful urban renewal is possible. In addition, it could be highly profitable for investors. It is a win-win situation.
A company is doing just this. That company is City Capital Corporation and Ephren Taylor, a very young successful entrepreneur who has been on several talk shows in the last few years, runs it. Therefore, what you have is a program that addresses urban decay, provides investors with excellent profit opportunities and provides an opportunity for less fortunate people to own a home. This program is for real and should not be overlooked by any serious investor.
Like any legitimate investment opportunity, there are rules that must be followed. One important aspect of self directed IRA real estate investing is that you cannot buy the property for yourself or your family to live in. It must be purchased strictly for profit.
What Ephren’s company provides is a turnkey opportunity for investors, they look after all the paperwork and legal issues and you the investor just sits back and collects the profits. Ephren’s company approaches the city leaders with the capital of the investors and convinces them to sell the properties at a very low cost. Then the properties are renovated.
While the renovations are under way, a list of buyers is prepared. These potential buyers are good, honest hard working people who are qualified for a mortgage. In most cases, these are people looking to move from renting to home ownership and they are anxious for this new opportunity in their lives.
You have probably noticed that urban areas in this country are suffering. Many city leaders have wondered what could be done to save these areas. This is where Ephren’s Company comes in. It is truly remarkable what is happening in some formerly downtrodden areas.
IRA real estate investing is all about providing affordable housing for working class people. A savvy investor will see the opportunity for the tremendous wealth potential. The bottom line is this is a great opportunity to realize a high return on your investment and help re-build communities across the country. Ephren Taylor’s vision is something any serious investor should look at.
Darren is an active participant of a national network of professional writers who advocate socially
conscious real estate investing through the use of retirement vehicles such as IRAs, 401Ks and other
retirement assets. For more information, or to get involved, please visit http://www.theselfdirectedira.com
now.
Investing in Real Estate with Your IRA
A little known fact about IRAs is that you can use them to invest in virtually anything. Many of us are so accustomed to plugging our retirement funds into stocks, bonds, and mutual funds that we never explore the investing universe that is open to us. Buy gold with your IRA? You bet. Tax liens? Easy. Investment property? Of course. Naturally there are restrictions, but those mainly deal with who you buy from, who you sell to, and whether or not you actually touch the money. If you are not happy with how your retirement fund has performed over the past several year, then you owe it to yourself to learn more about self-directed IRAs.
Why Real Estate?
Our retirement funds are normally invested with a long term, buy and hold focus, with a time horizon of ten years or more. So which performed better over the past ten years, the Dow or real estate? The answer may surprise you.
The Dow kicked off 1999 right around the 9,500 mark. Over the next four years the market lost about 2,000 points (more than 20% of its value) before it began a stunning five year climb to 14,164. In early 2008, the market collapsed and ended the year back at 9,000. After hitting a low of 6,547, the market has recovered to about 8,200 (as of this writing). So from January 1999 to January 2009, the Dow’s wild roller coaster ride left its buy and hold investors down 500 points (-5.3%) and that doesn’t include the 800 points we’ve dropped since then. The last decade in the stock market has been tough on buy and hold investors.
So how did the real estate market fare? Let’s use the US Median home price to compare. In January 1999, the median home price was $153,000. For the next four years, the housing market experienced a steady climb to $182,000. That was a 19% gain in housing while the Dow was busy shedding 20% following the Dot Com bust. Housing shot up to $254,000 in early 2007, and we all know what happened next. The housing bubble burst and prices plummeted to zero! Right? Not exactly. It appears that the national median price bottomed in March 2009 at $202,000. That is a pedestrian 20% drop from its peak as compared to a stunning 54% free fall for the Dow. More telling however is the fact that the US Median home price posted a 56% gain from January 1999 to January 2009, while the Dow lost 5% during the same time period. Which numbers would you choose for your retirement funds?
Certainly this is a simplistic analysis for a relatively short time period, however it does reinforce the precepts that the stock market is more volatile than real estate and that the real estate market, while it tends to increase slower than stocks, also tends to hold its value better than stocks. For a long term investor these are desirable characteristics.
How to Invest in Real Estate
The first step is to research self-directed IRAs and find a custodian that fits your needs. Ask other investors who they use, because the services provided and fees charged can vary dramatically between companies.
Next, determine your goals. Are you looking for short term gains or long term appreciation? Are you willing and able to invest the time to educate yourself and then to find and manage your investments, or are you willing to pay a professional to perform these services? How much money do you have to invest? Unlike stocks, real estate always has some intrinsic value, but there are risks associated with real estate and you must understand them!
Finally, build a team of real estate professionals. Real estate is truly a team sport; there are so many facets that no one person can learn it all, and you will reach far greater heights with a team than you ever will investing solo. If the thought of interviewing attorneys, contractors, and agents bothers you, then seek out investors that already have a team, ask who they use, or consider investing with them.
The bottom line is that recent history has proven that real estate is a solid long term investment and deserves a place in any retirement portfolio. With the fear and confusion in the market, there are outstanding deals to be found, and real estate might be just what you were looking for to give your IRA a boost in the decade to come.
www.TucsonREInvestor.com
Matthew Shozda is a Real Estate Entrepreneur and Realtor in Tucson, Arizona. He specialized in creating investment opportunities with above average potential returns for his partners and helping other investors buy and sell investment property.
He is an avid hiker and camper, and can often be found wandering in Arizona’s stunning mountains and deserts. His hiking blog is www.DesertDogJournal.com.
Categories: self directed ira Tags: estate, investing, real
Personal Finance & Investing : How Does a Roth IRA Work?
A Roth IRA is a type of retirement investment account that an individual can start withdrawing from at the age of 59 and a half without paying taxes on it. Open a Roth individual retirement account by visiting a local financial institution with tips from a futures and options floor trader in this free video on personal finance. Expert: Mark Griffith Bio: Mark Griffith has graduated in economics and philosophy at Clare College, Cambridge. He has been a futures and options floor trader at LIFFE (London International Financial Futures Exchange). Filmmaker: Paul Volniansky