Author Archive
Best Home Improvements for Real Estate IRA Properties
Posted on September 7, 2016 byIf you own rental property or investment property within a real estate IRA, it’s important to be careful with the money you spend making improvements. While many people make improvements and upgrades to their own homes to increase their enjoyment of their homes, not every home improvement immediately adds to the dollar value of a home, net of costs.
But some do, depending on the property and the market. This is especially true if you are bringing a home up to the standard of the surrounding neighborhood.
Except in special circumstances, or when transforming an unlivable home to a livable one, most major renovations don’t add immediate resale value once you account for the costs of professional work, licensed contractors, etc.
However, there are a few projects that have proven themselves over time, when used in the right homes – chiefly things that improve the cosmetic appearances of a home and enhance curb appeal. Read More→
The Self-Directed Real Estate IRA: Five Benefits You Didn’t Know
Posted on August 1, 2016 byYou might have heard of a Real Estate IRA. You might have even looked into it as an option in the past as you considered the retirement options that make the most sense for you and your family. But if you’re not familiar with this kind of retirement account, you might be surprised at just what kinds of investment results you can have when using it properly.
Don’t believe us? Let’s take a closer look at the Self-Directed Real Estate IRA—and how it can uniquely benefit your retirement plans:
Benefit #1: Getting More Leverage with a Real Estate IRA
One of the most fascinating concepts in real estate investing is that of leverage. By using leverage, you can make purchases you otherwise wouldn’t be able to make with the cash in your bank account. In Real Estate IRAs, you’ll be expected to use non-recourse loans, but you’ll still be able to use this concept of leverage to your advantage. In other words, you can buy real estate that you otherwise would not be able to with plain, ordinary cash. Read More→
Four Reasons Real Estate IRAs Might Be Right For You
Posted on July 11, 2016 byWhen you think about the acronym “IRA,” what do you think about? For most people, it’s a very common recipe: an IRA is something in which you put your mutual funds, your bonds, your stocks…and very little else. It’s the beaten path to retirement, and it works for a lot of people. But others wonder if there aren’t ways to supplement this type of investment and ensure a consistent level of income for your retirement years. These are the kinds of people who start to research Real Estate IRAs.
If that sounds too complicated for you, just remember: the IRS allows for lots of different types of investments through retirement accounts. A Real Estate IRA is simply a Self-Directed IRA in which you place a real estate investment. And considering just how common of an investment real estate is—especially for America’s seniors who want to ensure that they have consistent income for the future—then maybe it’s time that you consider real estate IRAs too.
Not convinced yet? Let’s take a look at some of the most common reasons people consider these IRAs: Read More→
Real Estate IRA: What Every Retirement Investor Needs to Know
Posted on June 5, 2016 byYou’re an investor who’s focused on the long-term: your ability to retire with a nest egg. You want to build over the long-term, and you know that there are many different vehicles for doing just that, including employer-based 401(k) plans and more. But what many investors overlook is the possibility of using a Real Estate IRA in their retirement portfolio.
Why do they overlook it? For one, the option is rarely presented to them. Many people don’t even know that you can invest in real estate with an IRA. Another reason: many people believe that investing in real estate is a “rich man’s” game. But investing in real estate is available to anyone with the drive and interest to make it happen. Let’s take a look at what every retirement investor needs to know about the Real Estate IRA in order to make it part of their portfolio. Read More→
Tips and Strategies for Getting the Most Out of Your Real Estate IRA
Posted on May 2, 2016 byIf you want to get the most out of your retirement, we have three words for you: knowledge is power. No, we’re not talking about any sort of “inside” knowledge when it comes to investing, or any sort of illegal tips and tricks. We’re talking about real investing knowledge: knowledge about the different types of accounts and investments you have available to you, and how to use those accounts and investments to the best of your ability. And one of the most important things for people to learn is how to use their Real Estate IRA in the best way possible.
Why a Real Estate IRA? Because self-directing this type of IRA allows you to utilize some amazing things that you simply can’t get when you invest in other types of accounts and asset classes. With real estate, you’ll be able to tap into your experience with this asset class…and possibly even get a lot of value out of it if this is your first foray into the world of real estate. How is that possible? Well, knowledge is power. Here are some tips and strategies for getting the most out of your Real Estate IRA. Read More→
Rising Rents and Millennial Buyers Bode Well for Real Estate IRA Owners in 2016
Posted on April 4, 2016 byOur clients who focus on real estate IRAs are encountering a more mature point in the investment cycle. We’ve had a nice run up over the last several years. Indeed, if you had some cash to play with in 2009 and 2010 and a bit of patience, it was tough to go wrong with real estate IRA strategies. The real estate market was attracting a boatload of institutional money and all the real estate investor had to do was step in front of it.
Now there’s still institutional money coming in, but investors have to pick their spots a little more, and getting your valuations right is going to have increasing importance going forward.
Meanwhile, the permabulls at the National Association of REALTORS® has also released their 2016 trends piece. Naturally, they think it’s always time to buy, so take their advice with a grain of salt.
Here are the NAR’s predictions for 2016, plus a few thoughts from us on how they may play out for our clients and those considering a real estate strategy in their retirement accounts. Read More→
Are You the Type of Investor Who Fits a Real Estate IRA?
Posted on March 6, 2016 byMost of us have the same financial goals. We want to take care of our families. We want to take care of ourselves. We want to work towards retirement with confidence that our decisions are the right ones, and we want to see our wealth grow. We want to retire with plenty of money left over for a comfortable lifestyle, happy and peaceful knowing that we’ve done enough to take care of ourselves should disaster strike. So what does this all have to do with a Real Estate IRA?
A Real Estate IRA is one tool you might have for getting to that goal. Although many of us share the same goals, the strategies which we employ to achieve those goals can vary. And for some people, a Self-Directed IRA invested in precious metals might be one way to get there. For other people, a Real Estate IRA might be more suited to their knowledge and experience.
How do you know if you’re the kind of person for whom a Real Estate IRA might work out? We thought you’d never ask. Read More→
Why a Real Estate IRA in This Day and Age?
Posted on January 31, 2016 byWe live in a digital world. We log onto the Internet all the time, and check our stocks. In the information age, it can sometimes seem strange that you would ever want an IRA that included something of real value like real estate or gold and precious metals. In fact, some people aren’t even aware that they can include these investments in their retirement portfolio. Instead, they simply follow the traditional advice – which usually nets them a complete reliability on the strength of the stock market.
Why would anyone consider an alternative, like a Real Estate IRA? As it turns out, there are a lot of reasons. In fact, there are so many reasons that we can only list a few of them here. But as you’ll see, it’s not very difficult to understand the power of a Real Estate IRA; what’s difficult is seeing the signs out there that your retirement portfolio needs more than a few mutual funds. Read More→
Dispelling Common Objections to Real Estate IRAs
Posted on January 4, 2016 byWhen it comes to investing, there’s a lot of information out there—and a lot of misinformation as well. Being able to tell which is which is one of the keys to educating yourself as an investor and keeping your retirement investments secure, safe, and stable over the long haul. That’s why we love to dispel some of the common myths and objections when it comes to Self-Directed IRAs—and today, we’re tackling Real Estate IRAs.
Are we saying that all objections or questions about Real Estate IRAs—or Self-Directed IRAs in general—are meritless and without value? Of course not. But by the time you’re finished reading this article, you should have a solid grasp of which objections you might want to consider…and which ones really aren’t objections at all:
Common Objection #1: Real Estate IRAs Leave You Little to Invest With!
The idea of contributing, say, $100 per month to an IRA is easy when you’re investing in stocks and mutual funds. When you’re investing in real estate, many people understandably wonder how a similar strategy might work when it comes to Real Estate IRAs. Read More→
Are You Secure? Three Protections of the Real Estate IRA
Posted on December 7, 2015 byHow secure is your retirement nest egg? If you own a Real Estate IRA, you might have an idea about what kinds of protections your retirement income has; but if you’ve never heard of the things, now’s as good a time as any to learn what your options are.
While many people associate an investment in real estate with speculation, the truth is that real estate can be a highly secure way to ensure that you have enough for retirement. Not only does real estate provide an opportunity for growth, but it’s capable of providing you with a stable income that you can use when you need it the most. And with the following three protections built right in to the Real Estate IRA structure itself, you’ll see that these investments can be much more secure than you originally thought. Read More→
Invest in Real Estate with Your 401(k)
Posted on November 9, 2015 byMany people want to invest in real estate “if I could only find the cash for the down payment on a property or two.” But for many would be investors – the answer to getting started in direct real estate investment is right under their nose: You can use a self-directed 401(k) to invest in real estate.
Techniques
For Employees
If you don’t own your own company (so you can become the sponsor of your own 401(k) plan, you have a couple of options:
Borrow. If your plan allows, you may be able to borrow up to $50,000 or 50% of your account value (whichever is less) to invest in real estate in a taxable account. If you go this route, understand you only have five years to repay the loan. Otherwise it’s considered a taxable distribution and if you are under age 59½, may generate penalties to boot. Read More→
Why Nervous Investors Can Benefit from Real Estate IRAs
Posted on October 20, 2015 byWhen stock markets are volatile, investors (rightly) get nervous. After all, many people have most of their wealth in the stock market. If the stock market goes down, then they see their wealth shrinking…and for people close to retirement, this is a scary prospect indeed. But it doesn’t have to be this way. With Real Estate IRAs, many people learn that retirement income doesn’t have to depend on the quality of the Dow Jones Industrial Average. Instead, retirement income can depend on your strength as an investor, and the wisdom it takes to know what true diversification really is.
And just what is that “diversification” we’re talking about? Some people will tell you that investing with diversification means having the right mix of stocks and bonds, of having stocks split up into small cap, medium cap, and large cap equities. But all that really means is that you’re invested in two different investment categories, all the while ignoring all of the very real possibilities for retirement income that are out there.
If you’re sick of feeling nervous every time that stock ticker heads into the red, then it’s time to broaden your horizons as a wise retirement investor and look into what diversification really means. Read More→
