When it comes to investment, you want your money to be safe, to have high return; you want to have a better control of it so you can make sure that every penny is working very hard for you. Investing in Tax Lien Certificates and Tax Deeds is a very conservative yet profitable way to create wealth and is a high-yield, property-secured, state-mandated investment. It matches your investment goal perfectly. You can even invest tax-free through a self-directed IRA.
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www.sunwesttrust.com – Your IRA can be a great investment tool and you are not limited to just what the banks and brokerage houses want to sell you, but you must be careful
Ever wondered about self directed IRA Investments?
I’m sure you’ve probably heard that they can bring returns far out pacing the standard custodian directed IRA accounts. But maybe you’ve been told that the rules governing the IRA permitted investments are just to difficult to understand and navigate. Or that they’re only for the sophisticated investor. The truth is that self directed IRA Investments can be used by anyone affectively if they follow a few simple actions.The first point here is that your IRA must be setup with a knowledgeable self directed IRA custodian. These are the individuals that oversee your account and make sure that all the paperwork is filled out correctly,and that your transactions are legal and organized.Self directed IRA investments can be a great help in maximizing your gains and diversifying your portfolio, because most IRA custodians only lead you to invest in things they get commissions on and that they are comfortable with. Unfortunately these areas of their expertise and comfort may not be the best investment for your highest and best return. To get the best possible returns, remember the point of your IRA account is for your comfort after retirement not so your custodian is comfortable right now.The comfort that you are concerned with your custodian having is the kind that comes with experience in overseeing transactions in the broad areas of investment vehicles that the government allows for self directed IRAs and the rules that govern these accounts.So you must look for a custodian that allows self directed IRA investments in a broad range of the IRA permitted investments and is very knowledgeable about the rules. There’s a problem here though because according to one study conducted by Forbes 90% of IRA account custodians don’t know all of the IRA permitted investments or how they’re supposed to be used. This means that there are very few truly capable custodians out there regardless of what firm they maybe affiliated with or how much they charge.And of course knowing what the IRA permitted Investments are is the key we are after. It may surprise you to find out just how many types of investment vehicles are allowed. In fact self directed IRA Investments nearly mirror main stream investing options with only a few exceptions. The IRS won’t allow investments in collectibles or life insurance. But really the governments main concern is that it doesn’t want to see any type of self dealing. That is they don’t want you to benefit from a transaction with your IRA. The IRS wants your only benefit to be the tax advantaged return that your IRA gets. So for instance, you are not allowed to sell anything to the IRA, if you did you would be getting double benefits in the form of the tax advantages of the IRA and the personal profits from the sell to the IRA.Nor would you be allowed to live in a home or apartment owed by your IRA. It’s important to stay away from this type of double dipping. This ban applies not only to you but to anyone closely related to you in your business and family life. Both you and the people in this group are considered disqualified persons.Aside from those transactions your options can include many things like derivatives, notes, venture capital investments, futures, Real Estate and more.Real Estate for example is one of the little known permitted IRA investments that is gaining in popularity because of the incredible returns possible by investing in property. You will definitely want to make sure your custodian is knowledgeable and experienced in administering investments in this area.Now do yourself a favor and take advantage of self directed IRA investments with an administrator that really knows the rules on IRA permitted investments.
Choosing the right IRA real estate investments requires having a lot of knowledge. That is not the idea of this article though. Do you know how to use an IRA real estate investment to manage, purchase or sell in today’s volatile market? Â Do you have any knowledge of the positive and negative aspects of lending your IRA vs. purchasing rental property turnkey or by completely looking after it by yourself?
Our goal is to help identify which particular plan is the best option for you as a real estate investor, regardless of whether you have experience or not. Many people are not aware that either they can start a self-directed IRA to their advantage by collecting the rewards of tax-free or tax deferred IRA real estate investments. It is a great way to build wealth in the current economic climate.
The advantage involves the ability to leverage the IRA by making cash offers to the bank. Therefore, the IRA owners are able to purchase properties at huge discounts. The difference between the property’s fair market value and the purchase price is called equity wealth. In addition, your IRA real estate investment has the ability to produce rental income from these purchases. The reason this happens is that the homes that the IRA has purchased are offered for rent to people who cannot acquire financing due to credit issues or any issue for that matter.
As you can see, this is a wonderful opportunity. You are using equity to secure property and rental income is paid to your IRA and thus your IRA is growing tax-free or tax deferred. The best part of this type of IRA real estate investment is the advantage of its turnkey nature.
If you chose to lend to an investor using a promissory note for example, you would still be getting the rental income but you would not have the equity profit. Lending is still not a bad option but you will always be wondering when your money will be returned.
The decision on which kind of IRA real estate investments is best suited to you is completely up to you. As mentioned before, lending the money is a good idea but you could always be worrying about when you will get it back.
Purchasing your own IRA real estate investment gives you more control and gives you the opportunity for much higher profits. To do this with little or no effort you must find the right opportunity for it to be as turnkey an operation as possible. The idea is to give you a nice income for little effort along with the time to enjoy your profits.