The current environment is not exactly favorable for financing your Real Estate investments, in fact it is next to impossible to borrow from traditional banks and it appears for now that is a trend that will go on for some time. The facts are credit is tight, Real Estate investing is not the first choice for banks to put their money and if you have any dings to your credit you are going to be left in the cold when it comes to financing your net venture.
So what do you do when all the traditional sources for financing have dried up? Well you have to get creative and look into other ways to gain funding or just sit and wait for things to get better. Most investors I know think that now is a very good time to get a great price on investment property. Prices are lower than they have been in decades and there are plenty of short sales and foreclosures that make sense as rental properties especially at current pricing. So if you are like the kid in a candy store with plenty of stuff to buy but have empty pockets I want to show you an idea you may not have tried.
There is no shortage of folks out there that have seen the value of their retirement nest egg dwindle down enough to wonder where the bottom is. The concept simply put involves finding a company (many can be found online) of your choice which specializes in Self Directed IRA’s and making your Real Estate investment using the company to facilitate. Most traditional companies tend to invest in traditional assets such as stocks, bonds and mutual funds.
Did you know you can invest in real estate, mortgages, leases, and other asset backed investments? With a truly self directed plan you can invest in assets you know, understand, and effectively control. The government has increased contribution limits to allow you to take full advantage of saving for the future. This allows you to compound your assets quickly with investments you select. You can decide which retirement plans are best and what types of investment you’ll want to make in that plan. There are IRS rules prohibiting self-dealing and other limitations but in general it is fairly uncomplicated. Many of the companies out there have tons of information on their web sites to help you understand how the entire process works. There are fees involved as well so educate yourself.
Go seek out a company specializing in this type of plan and do your research as to what the limitations are, and as always consult your tax professionals before you move any cash from your existing plan. In other words protect yourself at all times. The bottom line is this, today traditional 401K plans are losing millions and it will likely be a very long time, if ever, before those losses will be recouped. This is an opportunity to take full advantage and put your money into something you know and believe in.
Can you really say that about your existing plan? Yes you can choose which direction to put your dollars in traditional plans but you don’t typically have the luxury of choosing the actual company your investment goes to. There are plenty of companies that offer this so make sure you study as many as you can carefully. Look into this and I am almost certain you will agree that it may be one of the best ways to finance your Real Estate today. You may find that that when you are in charge of investment vehicle you might just have a better chnce at higher returns. And you don’t even have to go to a bank.