Often times people overlook this source of funds for their investing - their own IRA. But not just any old IRA will do. Done properly, this method can grow your IRA tax-deferred faster than most other ways. And YOU are in control. How would you like to start with $5,000 and be able to grow that to over $50,000 in one deal, tax-deferred? Want to max out the profits from your creative real estate investing efforts? Got your attention? Read on to see what one expert wrote on the topic:
Real Estate Investing With Your IRA
By Jon W James
If you are like many other investors who are just tired of dealing with the unending turmoil happening in the stock market then chances are, you would also want to delve into other lucrative but more secured forms of investment. One great alternative to stock market is by way of investing in real estate. And one perfect solution to achieve that is through your retirement plan, or what is known as Self Directed IRA.
Self-Directed IRAs have been around for quite some time now. In real estate investing, you can acquire both the benefit of generating solid monthly income and also produce long term gains through appreciation. Most people would prefer to invest in something that is physically visible to them, which is why a Self Directed IRA investment is the perfect solution for them.
Establishing a real estate IRAIn order for you to hold real estate in your IRA, what you would need to do first is find a qualified custodian. There are plenty of IRA custodians looking to assist investors who want to buy non traditional investments in their IRAs. You cannot open this type of IRA with just a regular brokerage, only through these specialized custodians who help in opening retirement account used to buy property.
How to choose the appropriate custodianYou need to find the perfect custodian in accordance to your resources and exact needs. To come up with the best custodian, here are a few things you must consider:
• Know every fee involved during the entire process
• Verify how your account will be structured exactly
• What is all the required paperwork needed to be accomplished
• How accessible can the custodian be for you
Once you found the perfect custodian to help you with your self-directed IRA or real estate IRA, you can now focus more attention in exploring the different types of investment opportunities available for you. The options available for investors are extremely diverse, it is highly important that you realize this in order to benefit the most out of your real estate IRA investment.
Today, Jon James is the managing Partner of IRA Source, LLC. At IRA Source, Jon specializes in "all things self directed". Jon shares his unique knowledge and experience with his clients and empowers them to realize their retirement dreams by showing them how to form their own IRA LLC and invest their Self Directed IRA's and other retirement accounts in real estate, gold, businesses and other alternative IRA investments. Contact us for more information on how to create a self directed IRA.Article Source: http://EzineArticles.com/?expert=Jon_W_James
NOTE: seek advise from an advisor with experience in real estate and self-directed IRA.
Friday, October 2, 2009
Sunday, September 27, 2009
HUD Foreclosures - What's the Deal?
With so MANY houses on the market, and 50% of houses sold being distressed properties, it is understandable that one would consider HUD homes. Can I use this in my creative real estate investing plan? What is a HUD home? I can across a very good article that gives a concise overview.
Buying HUD Home Foreclosures
By Thomas Straub
Buying HUD Home Foreclosures
By Thomas Straub
US Department of Housing and Urban Development, or, HUD home foreclosures are very attractive to investors and home buyers because the price of the home is automatically adjusted if the home requires repairs or renovations. For example, if a home will cost the buyer $15,000 to repair a property, then the HUD asking price will be adjusted downward to accommodate the investment the buyer has to make to get the work done on the property.
HUD does not actually fix the properties that it sells, rather, the buyer is responsible for making all the repairs and renovations needed. HUD home foreclosures are simply appraised and then sold at the current market price.
When a property is bought from HUD, the home foreclosure process is a little different than for other non-HUD home foreclosures. When the home owner can no longer make payments on the property, then the Federal Housing Administration, or, FHA who federally insures the loan, pays the lender the amount still owed on the property. This makes HUD the new owner of the foreclosed property.
If you are interested in buying any HUD foreclosures, then you can bid on them by working with a HUD approved real estate agent. The real estate agent will then show you the property. All bids must be submitted through the HUD approved real estate agent, and will be sealed and unopened until the end of the bidding period.
When the bidding period is over, all the sealed bids are opened, and usually the highest bid will get to purchase the property. If the original winner of the auction bidding does not complete the purchase within a specified time of usually 30 to 60 days, then the next highest bidder will then be offered a chance to buy the property.
When bidding on HUD foreclosures buyers must put up earnest money. HUD does not finance purchases, so all buyers must get their financing through a bank or other financial institution. A buyer should always make sure they have their financing secured before making a bid on a property. If a buyer makes a bid before they arrange their financing, and then they win the auction bidding, but becomes unable to pay for the property, they will lose their earnest money.
HUD does not actually fix the properties that it sells, rather, the buyer is responsible for making all the repairs and renovations needed. HUD home foreclosures are simply appraised and then sold at the current market price.
When a property is bought from HUD, the home foreclosure process is a little different than for other non-HUD home foreclosures. When the home owner can no longer make payments on the property, then the Federal Housing Administration, or, FHA who federally insures the loan, pays the lender the amount still owed on the property. This makes HUD the new owner of the foreclosed property.
If you are interested in buying any HUD foreclosures, then you can bid on them by working with a HUD approved real estate agent. The real estate agent will then show you the property. All bids must be submitted through the HUD approved real estate agent, and will be sealed and unopened until the end of the bidding period.
When the bidding period is over, all the sealed bids are opened, and usually the highest bid will get to purchase the property. If the original winner of the auction bidding does not complete the purchase within a specified time of usually 30 to 60 days, then the next highest bidder will then be offered a chance to buy the property.
When bidding on HUD foreclosures buyers must put up earnest money. HUD does not finance purchases, so all buyers must get their financing through a bank or other financial institution. A buyer should always make sure they have their financing secured before making a bid on a property. If a buyer makes a bid before they arrange their financing, and then they win the auction bidding, but becomes unable to pay for the property, they will lose their earnest money.
Tom Straub is the publisher of the site Stop-Foreclosure-Kit.US which contains videos and reports on how to avoid foreclosure and buying home foreclosures.
Article Source: http://EzineArticles.com/?expert=Thomas_Straub
But if you live in an expensive city like I do, New York City, it is highly UNLIKELY that you will find anything worth looking at. Creative real estate investing is a must in such a tight market as New York City. Looking for a second home in Florida? Yes, you will find many options. And one thing I like about HUD, they do an inspection and make the full report available online. So you have a basic idea as to what you are getting into, what needs to be repaired, and their repair estimates.
Next I will discuss alternatives which can be a LOT more attractive, but will also require teamwork. But, as always, one needs to have an open mind when doing creative real estate investing.
But if you live in an expensive city like I do, New York City, it is highly UNLIKELY that you will find anything worth looking at. Creative real estate investing is a must in such a tight market as New York City. Looking for a second home in Florida? Yes, you will find many options. And one thing I like about HUD, they do an inspection and make the full report available online. So you have a basic idea as to what you are getting into, what needs to be repaired, and their repair estimates.
Next I will discuss alternatives which can be a LOT more attractive, but will also require teamwork. But, as always, one needs to have an open mind when doing creative real estate investing.
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