Thursday, November 3, 2011

Checkbook IRA LLC Investing Guidelines - Part Two

Denver Estate Real

Real Estate as an Alternative Asset or Non-Traditional Asset

Denver Estate Real

Real Estate Investing-The Most Popular

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There are many reasons why real property is the most popular self-directed IRA investment. To mention a few:

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Familiarity-everyone lives in some sort of dwelling and has some first-hand experience with detached single-family houses, townhouses, row houses, condominiums, and apartments. Because of this first-hand knowledge and experience, taking the investing step probably feels safer.

Proximity-real estate is near-by. We can view it and examine it quickly and conveniently. We have personal experience with the neighborhoods and the cities. They are local and we are local.

Uncomplicated-because we are familiar with some type of real property, we have less to learn when we transition for being an occupant to being an owner/investor. We do not have to start at a zero understanding level. Essentially, we already understand some things, but not everything, about location, property taxes, hazard insurance, repairs and maintenance, and payments and expenses.

Variety-there are probably more types of properties to be considered as potential investments then any one investor could ever need or understand. Listed below are a few:

Single family houses

Multifamily properties

Raw land

Farm property

Resort property

Mobile Homes

Retail property

Industrial property

Self-storage property

International real estate

Limited Liability Companies containing real estate

Foreclosed real estate

Franchised business containing real estate

Professional Advise and Consulting-local real property professionals that specialize in specific types of properties are readily available for consultations. Usually, it is more comfortable to deal with a local professional on a face-to-face bases, rather than dealing with a distant advisor. Often, investment opportunities become available through or with a professional advisor or consultant. Being an investor in a property structured by a professional can be an excellent way to learn and to diversify your self-directed IRA investments.

Rental Property Advantages for Self-Directed IRA Investing

Right now, renting housing units, being a landlord, for single family or multi-family properties is providing excellent cash flow returns in many geographic areas. The main reasons for this situation relate to:

High unemployment rates

High foreclosure rates

High mortgage delinquency rates

High loan qualification requirements needed to be approved for a new loan

Because of these obstacles, many people who previously would have bought a home are now in the rental market. Additionally, the average price of homes has declined over the past three years, making them a better investment value.

Essentially, house prices have declined while rental price levels have increased.

This has set the stage for excellent rental cash-flow returns for the self-directed IRA investor.

How to Invest And Benefit From Very Favorable Situation

Be a solo, hands-on investor. Buy and own a rental property by yourself and manage it by yourself.

Option: outsource the property management

Be an investing partner with another hands-on investor. Buy and own a rental property with a partner and manage it with the partner.

Option: outsource the property management

Be a passive investor in a pool of rental properties that are professionally managed and administered.

Words of Wisdom

Success usually comes to those who are too busy to be looking for it.

Henry David Thoreau

Success in business requires training and discipline and hard work. But if you're not frightened by these things, the opportunities are just as great today as they ever were.

Rockefeller

An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't.

Anatole France

Checkbook IRA LLC Investing Guidelines - Part Two

Denver Estate Real

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