Now that the world stock markets have had their way with you and your plans for growing your wealth by investing with them, I want to tell you about another, more appealing way to invest. There is a way to actually own something you can put your soul into and love, and not lose sleep at night wondering if it’s going to be there when you wake up in the morning.
You can use your retirement assets, whether it be from a 401(k), IRA, SEP-IRA, etc., to invest in real estate. The method is called “Self-Directed” Retirement Plan Investing. It has been available and totally “legal” for years, but is not widely used or known about.
There are many good companies who can help you accomplish the administrative details of your Self-Directed asset investing and act as the custodian of your real estate assets. It is safe and easy to do, and with help from a professional real estate agent, it can actually be a rewarding, fun learning experience.
Now is the ideal time to acquire real estate in your retirement portfolio, as the prices for properties are low and sellers are willing to negotiate discounts even further. The IRA can even get a loan to purchase the property, so one does not have to use the full amount of the purchase price as a “cash out” from your investments accounts. The loans need to be non-recourse and usually require a 30% to 40% down payment.
So, if you thought your ability to purchase great value properties was limited to your current “taxable” finances and standard debt-to-income ratio calculations, think again! You have another resource to take advantage of today’s values. For further information contact me, or your favorite Hawaii Life real estate professional.
Aloha and happy investing in paradise!! (not in the “Hell’s Canyons” of Wall Street)