Real Estate Financial News: IRA Real Estate Investing

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Posted on October 29th, 2009

ar125225319859879Using your retirement funds to invest in real estate may likely sound tempting due to the current volatile stock market that may be stopping you from building wealth. To invest in real estate using your retirement funds you will need to locate an independent Individual Retirement Account (IRA) custodian that allows an IRA Real Estate Investing option. Then work with that company to set up the best IRA real estate investing account for you.

Many of the companies that offer IRA real estate investing options may limit your choices to stocks, mutual funds, certificates of deposit, annuities and other similar financial tools.

Real Estate Investing Tip:

The Internal Revenue Code under Section 408 permits an individual to purchase land, residential property, real estate contracts, commercial property, condominiums, or trust deeds with IRA real estate investing accounts.

The two types of IRA Real Estate Investing:

1. Tax-free IRA Real Estate Investing – Tax free retirement accounts are also known as Roth IRA where yearly donations are made with after-tax dollars. The benefit of the Roth IRA or tax-free IRA real estate investing is that the growth of the retirement account is tax-free.

2. Tax-deferred IRA Real Estate Investing – Tax deferred are the tax deductible IRAs that allow yearly contributions to a tax-deferred account with pretax dollars. This means that the money, which is deposited in the IRA is not taxed but while withdrawing the money immediately after the retirement the taxes have to be paid.

IRA real estate investing has great advantages for investors allowing them to invest in properties like:

  • Raw land
  • Mobile Homes
  • Apartments
  • Single family homes
  • Real Estate Notes
  • Commercial Real Estate

IRA real estate investing also has the incredible advantages of giving you benefits such as:

  • Estate planning
  • Reduction of taxable income
  • The power of compound interest
  • Asset protection

Although every IRA allows for real estate investment you should know the three types of accounts that are offered. Each of the IRA accounts has their pros and cons of IRA real estate investing.

The three types of IRA Real Estate Investing accounts:

A Traditional IRA real estate investing account allows you to annually deduct your contributions from your income. However, when you begin withdrawing the money, those funds will be taxed as regular income.

A Roth IRA real estate investing account gives you no deduction on your current contributions but it allows you to withdraw funds tax-free. This IRA real estate investing option may be a good one for you if you expect to hold it for a long period, particularly if the property rises in value over that time.

A SEP-IRA real estate investing account is uniquely designed for small companies and self-employed individuals. With a SEP-IRA you can contribute up to 25% of your compensation or $40,000 whichever is less. This is an ideal option for real estate practitioners who can make high contributions, as they are able to build funds more quickly to purchase properties. Withdrawals from a SEP-IRA real estate investing account are treated like those of a traditional IRA for tax purposes.

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Top 10 Real Estate Investing Syndication Benefits

real estate investing syndicationI have conducted over $14 million worth of real estate deals across five different markets in North America in a mere 26 month period. Now, I’m teaching and providing the resources for everyday real estate investors to learn how to close more real estate deals around the world. This will allow you to pocket more 6-figure checks using the real estate syndication system.

Turning your real estate investing business into a syndication empire will give you these top 10 rewards.

  1. Get started without any previous industry experience. My client portfolio includes teenage college students, a retired track & field coach, accountants, medical doctors, attorneys, a professional opera singer, sales executives, marketing executives, engineers and regular hard-working moms and dads who came aboard with full-time jobs. Do you think they had previous experience syndicating real estate? No
  2. The ability to run almost everything from a laptop and phone. Within 5 weeks, my client Michelle Agar syndicated her first group of 5 investment properties in Edmonton, Alberta, earning her $269,000 in profits!
  3. Earn an exponential income. When you syndicate your real estate investing business, you generate a GREATER FREQUENCY of profit. Why? Because, syndicating your real estate investing business will enable you to systematize your business so deal making becomes a recurring cycle. This means you will have a repeatable business model that grows geometrically.
  4. Produce MORE WEALTH in a short period of time. Remember, my business syndicated over 3 million dollars in real estate profits in just 93 days.
  5. Live a virtually tax-deductible life. Having a real estate investment business will give you the greatest personal, business and real estate tax advantages.
  6. No need to write up an extensive business plan. Thanks to real estate investing syndication, Tom Cooke and Claudette Diaz now have $330,000 in private money at their disposal. They generated $19,026 in profits from the first deal they completed within their first 27 days of becoming syndicators. They have built a buyer’s list of over 500 investors, and set up a syndication business in another city they’ve never visited before!
  7. Get personally involved with little risk. When you syndicate your business, you become a major player in the market without risking any of your own capital. You, as the real estate syndicator, put the deal together and receive a significant share of the profits (between 20% and 50%) without having to invest your own money. This allows you to concentrate on multiple deals at one time.
  8. Your business won’t be tied to economic cycles. Many real estate investors are now saying that the real estate investing market is dead. Why? Because they can’t find deals. They aren’t attracting buyers. They can’t get their hands on enough available cash to fund deals. Banks are not loaning money to them. However, if you change your business model to one of real estate syndication, then you’ll get direct access to all the cash you’ll need. You’ll attract buyers and close more deals – no matter the economy.
  9. Have an abundance of customers wherever your business goes. For example, if you joined my real estate investing syndication network, you’d connect with a pre-existing network of more investors in 7 countries on 5 continents who want to help investors like you joint venture on real estate investing deals on an ongoing basis.
  10. Ultimately, build a business that is focused on helping people while you rapidly build a 6-, 7- and 8-figure Investment Empire. We’ve proven that it can happen.

I’m now dedicated to helping investors every where learn that there are options for investing in real estate using syndication. I’m bringing buyers, investors and sellers together matching their needs and teaching them how to enjoy an abundance of investing profits.

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A Crucial Real Estate Financial Tip: Risk Control for Larger Gains

Each real estate investment purchase has one objective: to realize a return on your initial investment. This makes the ratio of risk to reward a vital part of financial success. The perfect investment would be purchasing at the perfect time, followed by an increase in value which makes you a sizable profit on real estate investment. That also means that you lose a significant amount of money if the property value drops. So imagine a situation where you could obtain all of the rewards of rising prices while protecting your investment from a sudden decrease in value.

How could this be true?

It’s a risk control tool called “Lock in value property equity”. This financial risk control tool is an established method for that protects against declining real estate values in the market while still letting you to reap the profits or gains when the market value is high.

How “Lock in Value property equity” works for securing your real estate financial investment:

The company you purchase the real estate from gives you the right to sell the property back to them at the value you locked in at the time of original purchase. It usually is agreed that you lock in price of the real estate for up to 10 years with the option to resell back to the company after two years of ownership.

If the real estate investment is valued at $100,000 and the value falls to $80,000 after 3 years you can sell it back to the original seller for the contacted purchase price: $100,000 The $20,000 in real estate value loss does not affect your investment. You may not have made a profit but most IMPORTANT you didn’t LOSE on your financial investment.

Crucial Real Estate Financial Tip Risk Control for Larger Gains

Everyone who is considering investing in real estate financially should know about risk control tools so they don’t lose on their investment. “Lock in Value property equity” is an essential tool that helps you to minimize financial risk for a small fee, while safeguarding the potential profit from the real estate investment.

Balancing risk with potential reward is a key consideration when the goal is to get the most out of long term profits. As real estate values continue to go down in this country, it is a risk control tool that’s seeing more and more use among real estate investors. It’s allowing them to work on making a profit while avoiding potential financial loss on the investment and it still leaves the option of selling to anyone else if that ensures more profit!

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Investing Tips for Financial Success in Real Estate

There are many investors that are learning that investing in stocks, shares or ForEX can prove to be quite devastating with the continuing economic downfall. In comparison to shares and the stock market, investing in property is a safer, more stable option. It isn’t unexpected to see more investors interested in the real estate investment business as a smart financial decision. Despite of what happens in the real estate market you always have the actual property as an asset to fall back on.

Tip #1 for Real Estate Investing Beginners:

Always know exactly what you are getting into with your financial investment. Do your research, study to learn about real estate investing, the options and the resources.

Starting with the basics of investing below you will have a good head start on earning large financial gains from your real estate investments.

Use your first real estate investment property as a rental, keeping it as an asset. After purchasing your first real estate property you have the option of renting it allowing the “tenant” to pay the mortgage. You are still in control of the property but someone else is making the payment and you have an asset. If things ever go bad for you financial situation you could always move into the property yourself.

When starting to invest financially in real estate property it’s important that you understand tax advantages and issues. You always want to be on the right side of the law when it comes to real estate investing taxes so make sure you do your homework. There are many tax advantages that you could gain especially in today’s economy. Take the time to consult a tax advisor that can guide you in the right direction and help with your tax issues.

Again do your homework, know what and where to purchase real estate. This is a key part of real estate investing that you need to master. You also need to consider the various possible financing options that you may need to complete the investment purchase. It’s an essential to do some research before you decide to make any final choices of the type of real estate to invest with. As you gain the knowledge of what makes a successful real estate investment you will increase your chances of growing your profits.

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Real Estate Financial News: Profitable Investing Using Leverage

using leverage for real estate investingThe number one tip for being a successful real estate investor is to surround yourself with a power team and don’t focus your business only on yourself. A power team around you allows you to leverage other people resources, skills, time, money and build a successful real estate investing business. If you leverage the correct way you could find yourself running a real estate empire building an unlimited number of resources.

The following tips are here to help you begin using leverage as you embark further into your real estate investing career.

When you start leveraging you may have to get dirty.

I didn’t say leveraging would be easy, you may have to do some of the work yourself. Make sure to take the time to clean or paint a home you are considering to flip. Remember to never cut corners during an assessment, legal matters or an inspection. If you can’t handle the job then hire a professional and create the leverage of a future relationship.

Calculate how much your time is worth to you.

Making a decision on what to leverage in your real estate investing business you need to decide what your time is worth. This can easily be done, for example:

Your business takes in $50,000 a year (or will be…if you’re just starting), based on a full 40 hours a week your hourly pay would be $24 an hour.

So any part of your business that you are considering leveraging out should cost less than $24 an hour. Yes, it’s that easy.

Areas of your real estate investing business that you could leverage out:

  • Daily office tasks
  • Marketing/Promotion
  • Building a Client List
  • Phone calls/email
  • Running your real estate investing blog or website

The foundation and key of leveraging your real estate investing successfully is your time.

Leverage the past and you move forward finding investments.

To be successful when you invest in real estate you must always be working on new deals. Having to work on business issues that are in the past will hold you back form real profits. Leverage out last years taxes to an accountant or think about hiring an assistant to deal with last years paperwork. You should always be focused on the future.

Build and use your power team.

When you start building that great team of people to surround yourself with choose carefully. Do your research, get recommendations and find out if they can help you in more than one area. For example if your lawyer has experience in real estate investing you can leverage his legal skills as well as his leads for new deals or opportunities.

Whenever possible leverage other people’s:

  • Skills
  • Time
  • Money
  • Resources
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Brad Wozny 8 Figure Empire