Posted On: November 10th, 2014 6:42PM
All these years our Bankers told us that we should buy CDs with our 401Ks, SEPs, & IRAs. Our Stock Brokers told us all about Mutual Funds, Stocks &Â Bonds.Â NO ONE told us that we can buy CDs, Stocks & Bonds AND Investment Real Estate. We can buy anything we want to invest in by using a "Self Directed" entity. These companies are operating nation wide. Their fees are reasonable and the rules, you will find, you can live with. You can even go in "partners" with your retirement account. I will post some of these companies here in this blog for your convenience. However, if you google "Self Directed IRAs", I'm sure you'll find even more. At this time, with real Estate Prices back to 2004 or less and rates being very reasonable, you might consider doing this. If you would like to invest in Southern Arizona, I can be of service to you. Good luck & here's the list.
Posted On: November 3rd, 2014 8:16PM
In the last four and a half to five years, it has been a problem getting "any" kind of return on investment and still seem safe. With the Real Estate Market at least close to "bottom", this might be the answer.Â If you took your CASH and bought a rental home, you can get a write off, good cash on cash return, and even appreciation in the l o n g run.Â Here's an example. You purchase a two bedroom, two bath townhome with $100/yr HOA for $80,000 Cash. You rent it for $500/Month on a year round lease.Â Your gross income is $6000/Year minus $100/HOA, $450/GVR, and appx. $700/Taxes and $400/Ins. That still leaves $4350/yr income which is almost 5.43% return on your $80,000 investment before your write-offs.Â Are you still concerned that you think the market is still declining?Â This investment in this example is "free & Clear" so as long as you don't sell it, you haven't lost a penny.Â When the market returns, it will certainly surpass what you paid so there will be some appreciation too. After enough "depreciation", you may want to adjust your basis with a tax deferred 1031 exchange, but that's another blog.Â For further information on this subject, 1031 exchanges, or anything else in Real Estate, contact Stu Samovitz @ 877-609-2121 or firstname.lastname@example.org