The Basics:
Do you think that your only retirement investment option is the stock market or low-yielding CDs? Most real estate investors aren't aware that they can use their retirement savings, such as IRAs, 401(k) and other qualified plans, to invest in real estate. In addition, many do not fully understand the incredible wealth-building powers these government-sanctioned plans hold. Any IRA invested in low-interest CDs or government bonds will grow exponentially due to the tax-deferred or tax-free status that IRAs possess. That's fine - if you are satisfied with low investment returns and believe that they will keep you ahead of the inflation rate and meet your retirement needs. For most investors, low-rate fixed investments are not the answer, so many have turned to the stock market.
Though the stock market can offer significantly higher returns, many investors in recent years have seen their retirement plans derailed or significantly altered. Historically, the stock market has been a sound investment over time. But looking more closely, the market has achieved virtually all of its gains over relatively short bull-market surges. Given its historic ups-and-downs, do you really want to bet your retirement exclusively on the U.S. stock market rising in value? Can you be confident that the money you will need will be there when you need it?
You do have options."
Other investors, using their current investment strategies in real estate or other alternative assets, are able to achieve substantially greater returns in their IRA plans than they would by investing in stocks or mutual funds. When you combine the powers of an IRA with the knowledge and expertise of a real estate entrepreneur, such as, investors using "The Cookie Cutter Approach To A Preforeclosure Fortune" the result can be an opportunity for tremendous financial growth. By creating, transferring, or rolling over a 401(k) to a truly self-directed IRA, you will have complete control over how these funds are going to be invested. Imagine being able to complete real estate transactions almost exactly as you are currently doing them, but gaining the added advantages offered by IRAs and their tax-deferred/free
Why haven't I heard about this before?"
Most investors don't know this opportunity exists because most IRA custodians do not offer truly self-directed IRAs that allow Americans to invest in real estate and other non-traditional investments. Often, when you ask your custodian/trustee, "Can I invest my retirement funds in real estate?" they will say, "I've never heard of that" or, "No, you can't do that." What they really mean is that you can't do this at their company because they have a vested interest in getting you to invest in their stock, mutual fund or CD products. One company I have discovered that is a true self-directed IRA custodian is Equity Trust Company . They will not only allow you to invest in all forms of real estate (or other investments not prohibited by the Internal Revenue Service), but will also handle all transactions within your IRA. You should check them out for yourself.
"How do I know this is legal?"
For many years, corporations (large and small) as well as individual Americans have been using their retirement funds to invest in real estate using with IRAs, 401(k)s and other pension plans. But because most Americans have not been educated about their options, they might wonder, "Is this legal?" Well, quite simply, it is. But don't take my word for it, just look at information published by the ultimate authority on IRAs, the Internal Revenue Service. In IRS Publication 590 (dealing with IRAs), it states what investments are prohibited; these investments include artwork, stamps, rugs, antiques, and gems. All other investments, including stocks, bonds, mutual funds, real estate, mortgages, and private placements, are perfectly acceptable as long as IRS rules governing retirement plans are followed.
We can also look to information provided on the IRS website. The following is an excerpt from an FAQ section about IRAs: "Are there any restrictions on the things I can invest my IRA in? The law does not permit IRA funds to be invested in collectibles such as: · Artwork · Stamps · Rugs · Antiques The law also does not permit IRA funds to be invested in life insurance contracts. See Code section 408(m) for additional investment restrictions.
Finally, IRA trustees are permitted to impose additional restrictions on investments. For example, because of administrative burdens, many IRA trustees do not permit IRA owners to invest IRA funds in real estate. IRA law does not prohibit investing in real estate, but trustees are not required to offer real estate as an option.
"Now that I understand the basics, let's talk about how self-directed IRAs can benefit me!"
As mentioned before, an IRA is one of the most powerful wealth-building tools available to real estate investors. But why is this? What benefits can an IRA offer that your present investing strategies cannot? Well, there are several benefits, you will see how an IRA can provide investors much more than just a way to save for retirement.
If you have enjoyed this report, why not forward it to an associate or colleague who can profit from this information? They'll thank you for it!
About The Author: Ross Craft is a real estate investor and author of the book “The Cookie Cutter Approach To A Preforeclosure Fortune”. If you need more information, he can be reached at http://www.win-winforeclosures.com
Calculating Real Estate Profit By: Ross Craft There are many things that can affect your profit margin when investing in real estate. Being knowledgeable about all aspects of making money in real estate and learning to recognize all of the costs that you could incur with any given real estate investment will help you to choose good investment properties and avoid those that are more trouble than they are worth. By now you probably already know how to calculate how much gross profit a property can potentially earn. To do this all you have to do is take the market value of the home and subtract your purchase price to see how much profit the property could potentially make you. But this is only a skeleton glimpse into the potential of the property, making money in real estate requires that you know every hidden cost, no matter how small, that could reduce your profit margin. If you don’t have a good feel for housing repair costs, ask a contractor to bid on the project before you buy. By the way, one of the most difficult decisions to make in rehabbing is how much is enough. If you look at a property and think, this needs to be taken down to the studs and rebuilt, you should probably move on the next deal. If you use my “Cookie Cutter” approach finding once in a lifetime deals happen weekly. Make sure that you account for every repair. Get estimates and price supplies. Don’t guess. Attention to detail will make it more likely that you will be to stay on budget during the construction phase of your project. Oh, and don’t forget about building permit fees. You will also need to account for any liens that you will inherit with the property. Liens can include arrearages in property taxes or any other bill that has been attached to the property for collection purposes. Being able to find these hidden costs is key to making money in real estate. Carrying costs will also need to be subtracted from the gross profit potential of the investment. These include any taxes, loan payments, interest payments, and insurance costs that you will have to pay while you own the property. These costs will continue to mount as long as you hold the property. That is why it is very important to move a property quickly when making money in real estate. You will also need to take into account inspection fees, brokerage commissions, legal fees, and advertising costs that you will have to cover when it comes time to sell the property. Include everything that you can think of. This will help you avoid any hidden costs and give you a clearer picture of what you stand to earn on each and every property investment that you make. About the Author: Ross Craft is a real estate investor and author of the best selling ebook "The Cookie Cutter Approach To A Preforeclosure Fortune" which teaches you how to acquire property in pre-foreclosure with a successful, proven way to approach homeowners and get the deal. Learn the strategies that the top investors have quietly been using to make a fortune by visiting http://www.win-winforeclosure.com
Making Money in Real Estate: Common Mistakes By: Ross Craft http://www.win-winforeclosure.com When it comes to making money in real estate the highest profits can be found in the art of flipping. Flipping real estate is the process of buying a fixer home under value, doing the necessary work, and reselling it for substantial profit. But while there are great profits to be earned in flipping real estate, there is also a potential for loss. The key to making money in real estate is to maximize profits and minimize loss; both of which can be done by avoiding these mistakes most commonly made by real estate investors:
Sometimes making money in real estate has less to do with the smart choices you make and more to do with avoiding the costly mistakes that can cut into your profits. Keeping your eyes open for potential losses will ensure that you keep your hard-earned profit where it belongs. About the Author: Ross Craft is a real estate investor and author of the best selling ebook "The Cookie Cutter Approach To A Preforeclosure Fortune," which teaches a step by step process for finding and acquiring property in pre-foreclosure with a successful, proven way to prospect and get the deal. Learn the strategies that the top investors have quietly been using to make a real estate fortune by visiting http://www.win-winforeclosures.com
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