Getting Into Real Estate

The world offers many investing options. These investments range from conservative to risky. All individuals want to invest in something that will give them a return not a loss.

This is why many people are having a hard time investing with the current economy. Having the stock market and bonds plummet in their value makes individuals nervous. There are investments that are more successful in inflation than others.

Two of these options are precious metals and real estate. When inflation hit, the real estate market’s value dropped dramatically. This was bad for homeowners who wanted to sell, but now it is the perfect buyers market.

Individuals can even invest in real estate through their self directed IRA. This way the profits or rent that they receive through their real estate investment is saved for retirement. There are different types of real estate that can be bought with this IRA.

One type of property that can be invested into is an apartment complex. Individuals can renovate the complex and rent it or turn and sell it for a profit. It is important that all individuals know that the money from the apartment go straight into the self directed IRA.

Any money that is used for a personal benefit will disqualify the real estate investment from the IRA. The money can be used to fix up the property, but not for personal use. It can even be used to buy more real estate properties.

The self directed IRA has many regulations. One regulation for real estate investing is that the owner and his or her family cannot live in or on the property. If this does happen, then the investment is disqualified.

If there are any questions, investors can go to their custodians for clarification. One of the most important things is that the custodian be involved in purchasing the property from the beginning. The property will not count as an investment in the self directed IRA if the custodian is not involved.

NAFEP (The National Association of Financial and Estate Planning) is a leading provider of self directed IRA and self directed 401k products, administrative and custodial services.

Saving During Inflation

The current economy’s inflation makes it hard for individuals to invest. They fear that the economy is too unstable and that their investments will decrease in value. This would cause them to loose their retirement savings.

Inflation begins when printed money is produced in mass amounts. While the money supply increases, the demand for goods and services has stayed the same. The result is an increase in the price of goods and service to keep up with the money supply.

Inflation is a viscous cycle that is hard to stop. Many Americans want a safe investment option to protect their money. One safe option is to use a self directed IRA.

Safe investments are ones that hold their value during a time of inflation. Examples of possible safe investments are land, oil, gold, silver, and real estate. The self directed IRA offers many of these investing options.

Once the inflation hit this time, the housing market plummeted in value. Now is the time to buy real estate at a low value, hold onto it, and then sell it in five to ten years. Buying real estate in a self directed IRA is very possible.

Gold and silver is the safest investment. Each of them holds their value and has actually increased it over time. Both gold and silver have always been in demand.

Silver is the optimal choice. It currently is about $16 an ounce, but it will increase in about five years to $100 an ounce. The silver can be bought at a low price now and then sold for a large profit.

Silver is more rare above ground than gold because it is used in so many industries. It is used in electronics, batteries, solar panels, and so much more. If silver is invested through a self directed IRA, then the profit will be saved and gain interest until the individual retires.

NAFEP (The National Association of Financial and Estate Planning) is a leading provider of self directed IRA and self directed 401k products, administrative and custodial services.

Using Real Estate To Diversify And Optimize Your Retirement.

Many of us have most or all of our retirements in a 401k at work. However, if you can access your 401k funds your can roll some of them over into a Self Directed IRA. This can give you more flexibility and allows you to take advantage of economic downturns instead of being taken advantage of.

If you have the money in your 401k to purchase some real estate, a Self Directed IRA LLC will allow you buy the property using the funds from your account. (Self Directed IRA LLC are more expensive in California and Illinois but there are other options for those states.)

It will take about $2000 plus a state filing fee to set up the account. That will include the set up of the IRA, the LLC and guidance on how to proceed. That cost also includes consulting after the plan is up and running.

If you purchase the property as a rental all rent is paid directly to the LLC and continues to grow your investment. Taxes, maintenance costs, etc. are paid by the LLC. So your personal income isn’t involved.

It’s important to remain diversified and do this with only part of your retirement. Opportunities exist for purchasing real estate at low prices, now is the time. Rental income plus the appreciation will have a huge impact on your retirement.

To maximize rent revenue, buy the best house in the worst neighborhood. To maximize appreciation, buy the worst house in the best neighborhood. But find the best deal you can.

Be sure of what your doing and don’t rush into anything. Find a good company to work with. Work with people you trust.

When you retire, you can keep your Self Directed IRA LLC. The LLC can pay you as you need money. If you prefer, you can take ownership of the LLC yourself. It’s just important to take ownership of your financial life and make something happen.

NAFEP (The National Association of Financial and Estate Planning) wants to put you in control of your finances with the following: self directed IRA and self directed 401k products, administrative and custodial services.