Self Directed IRA
Finance Your Real Estate Deals with Private Money Lenders
100% financing still exists!
Private money lenders don’t often take a down payment from you and may fund both your purchase and restoration of the property, or more! In many instances , investors have purchased a property for so much less than market value that their lenders have actually funded not only the purchase of the property, all the renovation costs, AND allowed the investor to receive cash at the purchase closing to put towards their ongoing expenses and receive an initial profit up front .
This sounds great, but where do I find these lenders?
Private money lenders can be family members, friends, business partners, professional or personal acquaintances, attorneys, accountants, business owners, or strangers. Individuals that you come into contact with could be a potential private money lender for your real estate deals. Realize that people you see on a daily basis may be open to an investment opportunity if you have a solid plan.
What’s in it for them?
Fixed returns on their money providing larger profits than almost all other investment offerings , secured by real assets at below market value, insured against fire, theft, vandalism, and natural disasters, and the power to do all of this completely tax-free within their retirement accounts if they desire. Need we say more ? Retirement accounts are an wonderful source for private money lending. Individuals who have suffered through the erosion of their retirement accounts in recent years are likely to be enthusiastic when you ask them to be a private money lender.
Where do the funds come from?
There are a variety of sources that private money lenders can tap into in order to take advantage of timely investment opportunities. Individuals with self-directed IRAs can now use those savings to build future wealth through real estate investments. The flexibility of a self-directed IRA has enabled them to have control of their investments and allows them to take new paths to wealth management andrewarding growth within their funds. Finding these people and matching them with your real estate deals is a way you can complete your deal without using any of your own cash and credit.
Individual Retirement Accounts Shine Up the Golden Years
Planning for retirement anticipates the risks and the circumstances that you might face . If we could look into the future, it would be easy to be exact in knowing what to do . But we can’t assume things like how many years our lifespan will be, or if our personal life situation will change drastically . Our hopes remain constant , though, as we work to protect our assets and watch them grow in a tax-advantaged manner. When planning for retirement, we need to guard our long-term wealth . Saving during our working life should help us provide for a worry-free retirement with our Individual Retirement Account to secure that future. In today’s unpredictable climate, downsizing will eliminate some jobs. You could have an illness or disability that will keep you from continuing your employment . The life expectancy age continues to rise for both men and women , so being unprepared could mean you may outlive your savings. Inflation risk can chip away at financial returns on those savings. Frequently there are new health problems as we age, so there could be unforeseen medical expenses to pay . And you may have unexpected dependents, disabled or out of work adult children or grandchildren, to help care for , even in your retirement years. Life and what happens next is full of uncertainty, so we must plan and be disciplined about our plan.
A important component of retirement planning is preparing for all possible financial needs, and making necessary moves right now to reach our goals. An Individual Retirement Account should be an important tool in your arsenal . A self-directed Individual Retirement Account, either a traditional IRA or a Roth IRA, is your investment vehicle to make it happen . Contributing to individual retirement accounts in a regular manner helps you grow your retirement savings. A self-directed Individual Retirement Account gives you flexibility to diversify investment options in a safe, growth-oriented manner while taking responsibility for your own future . Self-directed Individual Retirement Accounts allow non-traditional investment options that could be key in reaching your goals. Saving and investing consistantly now will bring great rewards that will help make your retirement yearsenjoyable.
Self Directed IRA: Take Control of Your Retirement
There’s a way to shelter yourself from the stock market losses we’ve seen the last few years that have jeopardized people’s retirement savings. With the swings of the market, some people have seen 50%, 60% and even more of their investments vanish, with no hope of recovery. That scenario makes it imperative that you take control of your investment portfolio, and start seeing returns that are not taxable until you withdraw the money for retirement. The wise choice is a self directed IRA. Within that IRA, either a traditional IRA or a Roth IRA, you have a variety of allowable non-traditional investment options from gold to real estate. Self-directed IRAs have been part of the tax and investment code since 1972, yet many people are unaware of them. There are several reputable custodians that exclusively deal with self-directed IRAs; among them Equity Trust Company and Entrust New Directions IRA. Fees for these custodians vary, so be certain to have a clear idea of the volume of transactions you project making before deciding on your custodian company. You may pick out non-traditional investments without taking un-needed risks, and still see excellent returns . You can even join in with other people, invest in a fund and spread out both the risk and returns. You can establish an LLC and direct it to make investments for your individual retirement account.
If we remember anything from history , it is that there is a cycle to industries that smart investors see and take advantage of. Currently real estate markets are down in many areas of the country, making this a buyer’s market, and making real estate an opportunistic buy for a self-directed IRA investor . Look for a real estate investment secured by a note or deed with a fixed rate of return within your IRA, or a real estate fund that reduces risk by spreading the investment over a number of properties with low LTV (loan-to-value) ratios.
Taking charge of your IRA portfolio means greater opportunities to secure your retirement future.