Self Directed IRA: Is It a Good Idea for Real Estate?

Self directed IRA’s may be the answer if you want to take more control over your IRA investments…

Self Directed IRA may be a good idea for real estate investing.

What exactly is it?

It is an IRA   LLC  which you have more control over.  You will not be turning over your IRA to a mutual fund or some stock market investments which could go south real fast these days.

You can invest in real estate and tax liens, among other things.  The tax liens really surprised me.

I find tax lien investments fascinating, and I’m enticed.

But as with any investing, we need to do our due diligence.  We need lots of info and we need to make sure we get it from reliable sources.

More about Self Directed IRA’s

 

I like the idea of having more control over my IRA and it makes me sick that my IRA has not grown as fast as I think it should have.  

Then again, if we have any money left in our retirement accounts, that’s a good thing, right?

But I’m taking more of a hands on approach to my investments.  Why should I listen to some of those crazy people on Wall Street anyway?  Besides, I’d rather put my money in real estate now.

How about you?

IRA Questions Answered

First Time Home Buyer Tax Credit Causing More Havoc

IRS problems, landlord problems, more foreclosures- is there an end to all this housing mess and tax credit bandaid?

first time homebuyer tax breakThe first time home buyer tax credit is causing even more problems as this report from the Minyanville website proves.

Writer John Lipton brings out one of the top complaints(landlord losses) we  have had with this $8000 credit and asks the question, “What’s next?”

But the pace is  getting fast and furious as the deadline approaches. ( We got yet another call from one of our tenants taking advantage of this tax break right in the middle of Sunday dinner yesterday.)

Have they no shame?

As we have been complaining,  we’re being left with two empty units in the middle of winter with little chance of renting them “off season” until things start pumping up again next spring.

Thanks Congress.

As always you’re making brilliant business decision as you sculpt the housing market. But is it a work of art yet?

 Josh also explains there will be even more housing  trouble coming for this White House. Continue reading “First Time Home Buyer Tax Credit Causing More Havoc”

Famous Writer Loses Millions from Bad Property Management

Patricia Cornwell, the famous crime writer, is claiming she is the victim of poor property managment…

real estate due diligenceA famous writer has lost millions because of what she is calling bad property management.

Patricia Cornwell, the writer credited with getting many of us interested in forensics, probably should have been doing a little more investigating of her own investments.

She claims the people who were supposed to be in charge of her real estate are responsible for her loss of $40 million.

On the surface of it that seems like a lot of money.

But what went wrong, or better yet, what exactly happened?

Read Patricia Cornwell’s lawsuit against real estate managers

Here’s a warning.  We keep reading these stories and if you’re thinking about turning your properties over to managers as I am now considering, you’d better do your due diligence or else your money could end up in the morgue.

But perhaps Ms. Cornwell could have been a hard money lender.

Here’s an interesting article about what hard money lending is and how it can benefit both those with money and those who are anxious to borrow it.

Hard Money Tips 

Commercial Real Estate Is Going Way Down

Is commercial real estate really going way down? Yes, according to Howard Davidowitz, leading retail and real estate expert

commercial real estateCommercial real estate is going down, according to retail and real estate expert, Howard Davidowitz.

"The next shoe to drop will be commercial real estate," he says with a lot of expression.

Here are some more things he is saying:

"Many malls will be closing across America.."

"These guys are very leveraged."

Why?

Davidowitz says there is too much retail space in the U.S.

He gives the figures of 19 square feet for every American man, woman and child.  We only need about 12 feet each.

So that may be the answer about whether we should consider investing in commercial or not.

 

 

I think it is interesting to read the readers' comments on MortgageRatesAholic

Some are skeptical about the Fed's bright outlook for commercial real estate.  This is something we should always watch out for. 

We need to get all the facts before we believe public relations stories from the government anyway.

But another thing I think is interesting is this recession seems to be far from over.

Chinese Drywall Problems Round Two

Now we’re in for round two with the defective Chinese drywall as homeowners get cut off by insurers…

Defective Chinese Drywall

There are even more problems with the Chinese drywall as we now move in for round two.

Two insurance companies have dropped Florida homeowners who have made claims about the defective drywall.

As we’ve written before, the drywall is considered defective in some cases because it can emit sulfide fumes.

There have also been problems with the fumes causing corrosion of wiring and plumbing, plus some skin and breathing problems. Continue reading “Chinese Drywall Problems Round Two”