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Real Estate Market Slowdown: It is Time to Self Direct Your IRA to It?

ForeclosureThe real estate market is in a decline, with some experts say that it will reach the bottom-low valley in two or three years. Worsen by the credit crunch, the real estate market is now in a defensive position.

Right? Well, not entirely.

Some investors and businesses are thriving in the real estate market – foreclosure ‘hunters’, buy and rent back, and other opportunities.

Another way to take benefit in today’s real estate market slowdown is investing in real estate through self-directed IRA.

What is self-directed IRA?

The IRA (Individual Retirement Account), along with your 401k is often invested on the stock market, which is the reason why many people lose their retirement fund due to the stock market crash.

It is about time to be independent in managing your personal finances. Knowing and understanding the whereabouts of your money is key in protecting yourself from economic downturn, as well as allowing yourself to find better investment vehicles for your hard-earned cash.

One of the ways to enjoy the pretax savings, as well as deciding how you want to invest your retirement fund (and how much profit you want out of it) is through self-directed IRA.

According to Wikipedia.org:

A Self-Directed Individual Retirement Account is an IRA that requires the account owner to make investment decisions and investments on behalf of the retirement plan.

In essence, through a self-directed IRA, you can invest your retirement fund not only on the stock market, but also on many investment opportunities, such as real estates, franchises, partnerships, and many more.

Not all investments are allowed within a self-directed IRA account, though – for example, investments in the form of life insurance or collectibles.

Nevertheless, the self-directed IRA offers you a way to grow your fund with the most yielding investment methods.

Self-directed IRA to secure your money and give you peace of minds

Choices liberate people – Freedom (with responsibility) allow people to choose what’s right for them. Therefore, this will give them the confidence and peace of minds in living their life.

With so many scare stories about people filing for personal bankruptcy or losing their life saving these days, people need ways to control their own destiny.

A self-directed IRA can offer you just that.

One caveat, though – freedom without knowledge is fragile.

In personal finance, such freedom can liberate people to invest in the most yielding or the safest investment vehicles of their choices. The choices are highly dependent on the people’s financial knowledge and personal traits about money.

Why I recommend directing your IRA to real estate

I am not a real estate expert, but I learn from experience and from the mentors I have that to achieve great riches, or at least higher yield of your investment, you need to invest when the time is bad, such as today’s recession.

I mentioned above about foreclosures ‘hunters’ and buy and rent back opportunities – those people, often negatively reputed as vultures – because they are said to benefit from other people’s misery, are actually taking the opportunities to help people getting out of debt, as well as creating wealth out of it.

This niche market in the real estate industry is flourishing today, and I, again, recommend you to direct your IRA to real estates or real estate business.

How to open a self-directed IRA

You can set up a self-directed IRA account through companies that offer you such service, such as IRA123.com.

There are set up fee involved, but choosing the right partner can allow you set up the account fast and properly.

I recommend you to seek information on such companies, to see whether the one you want to help you set a self-directed IRA account offer more benefits than the other.

One of the benefits to look for is a company that is not only helping you set up a self-directed IRA account, but also holding real estate licenses or offering business financing to help you invest in real estates or businesses.

Do you want to secure your money and have a peace of mind? Control your retirement fund uses through a self-directed IRA account, as the real freedom is achieved if you can control your life and personal finance.

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8 Responses to “Real Estate Market Slowdown: It is Time to Self Direct Your IRA to It?”

  1. Ivan says:

    Hi iravestordotorg,

    Thanks for the info :)

  2. iravestordotorg says:

    If your looking for more information on Self-Directed IRA’s please take a look at iravestor. org. The site is set up to help individuals find SD IRA professionals such as IRA123.com

  3. Ivan says:

    Susan,

    Interesting blog – I’m checking it right now. Thanks!

  4. Susan says:

    Hello — Yes, self-directed IRAs do offer a multitude of opportunities — and you don’t have to have a fortune to get started self-directing your IRA. Check out the following link; there’s a good article on how to get started with little money. trustetc. com/blog/

  5. Bob says:

    We are having people wanting to invest based on lower home prices. I am not an expert but I believe that they can use self directed IRA’s for this cause in addition to Tenancy in Common

  6. Ivan says:

    Hi Bob,

    Yes indeed. So, all in all, Self-directed IRA will benefit people who plan to take advantage of today’s lower home prices :)

  7. Sale and Rent Back says:

    Property wire (propertywire. com)reported that leading UK economists are calling on the UK government to offer their own rent back scheme. Under such a scheme properties would be bought at a discount of between 10% and 20%, with the former owners able to rent back the accommodation and stay in their homes. This would be one of the best approaches to the current repossession crisis.

  8. joegreene says:

    Did you know you can buy real estate with your IRA and live in it? Check out this article by Andrew Waite of Personal Real Estate Investor. He talks about the benefits and pitfalls of some different options.
    http://www.personalrealestateinvestormag.com/uploads/Articles/IRA-Nov_Dec-08-v3.pdf

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