Don’t be surprised that “NO” is the most common answer.
This is because most Financial Advisors are in the business of recommending stocks, bonds, mutual funds, annuities and treasuries. They are not in the business to recommend products where they will not earn a commission or fee.
I have been in involved with clients in advising them on individual retirement plans since 1969 when the HR-10 Keogh Plan was the premier option for retirement savings for the self-employed. Since then, plans such as the Individual Retirement Account and Solo 401(k) have evolved to make tax deferred retirement savings account both easier to establish and more cost efficient.
One of the most important developments in Individual Retirement Accounts was the Self Directed IRA. Based on a 1996 court case, the IRS recognized the Self-Directed or “Check-Book” IRA in 2001 and allowed for the investment in real estate, gold and silver, tax liens, private placements, foreclosures, small businesses, etc.
Since then, there has been a lot of misinformation and myths appearing in the media to support different positions on this Retirement Plan Alternative.
While the SD IRA allows more options for investment than ever, there are certain restrictions to be aware of when investing retirement funds. These involve such items as the types of properties that can be purchased, use of those properties, holding periods, and access to loans. This is the reason that you should consult with a qualified advisor.
Today’s market offers unique opportunities on both a cash flow and an appreciation strategy. In today’s market, investors are taking advantage of the fact that cash flow opportunities have rarely been higher than it is today and is bolstered by a recovering market. From the cash flow standpoint, rental demand has rarely been higher than it is today and from an appreciation basis, home prices in the local area have increased by an average of 4.54%.
SHOULD YOU INVEST IN SINGLE FAMILY HOMES? Did You know that there is currently a Building Boom with Homes being built exclusively as Rentals?
We understand that the business service needs of Real Estate Investors differ greatly from those of individual home buyers and sellers. A Realtor® who has been certified in Residential Real Estate Investing recognize this difference and adapt their skill sets to service the investor’s needs in strategizing the investment business plan.
They can assist the residential investor in goal setting, planning, evaluating and acquiring properties as well as preparing an exit strategy.
To support real estate investors in building their portfolios, we offer a number of services such as
* Identifying and selecting potential investment property candidates for the Investor’s Review
* Arranging short term financing for both Fix and Flip Projects
* Preparing a Cost Analysis of any necessary renovations and an After Renovation Value (ARV)
* Assembling and scheduling qualified trades-people to perform any needed renovations
* Establishing and supervising a workable time line for project completion
* Provide Annual Financial Analysis and Review Services
* Executing successful Section 1031 Exchange Programs
* Coordinating Property Management Services for Rental Income Properties
* Developing an Exit Strategy to maximize the project’s return
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