Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Why This is the Best Time to Buy Real Estate with IRA Loans

By Corwin Smith Subscribe to RSS | April 19th 2012 | Views:
loading
 
  



Foreclosures spell doom for many people, but investors are often able to make the most of the situation. If you are an individual with money invested within a self-directed IRA, you could use it to buy property. Property investments are lucrative these days, and the current market presents a unique opportunity for growing retirement wealth within one’s self-directed IRA.

Diversify the Investment Portfolio

Until recently, custodians allowed investments to be almost exclusively in stocks, bonds, and mutual funds. Today, however, it is quite common to self-direct an IRA to purchase real estate. In fact, roughly half of all self-directed retirement accounts invest in some form of real estate. Purchasing property solely with IRA funds can be difficult unless you have 100% of the property purchase price in the IRA. However, you can obtain an IRA loan to overcome this hurdle.

Even if you are able to cover 100% of the property purchase, there is another reason you need a loan with your SDIRA. The property market is not going to stay this lucrative forever. The low property prices are a once in a lifetime occurrence. If you want to take advantage of this opportunity, you can purchase even more of discounted properties by leveraging borrowed funds.

Lower Risk to Lenders

Lenders are more willing to offer IRA loans, also called non recourse financing, because they are confident about recovering the loaned amount when a property is purchased at a discount of today’s market. Non recourse lenders, by definition, cannot require liability be assumed by the IRA or the beneficiary personally for repayment on the loan. They can only foreclose the property owned in conjunction with a non recourse loan and cannot hold any other IRA assets as collateral.

This normally makes non recourse financing a riskier option for lenders. But as mentioned, thanks to the current market conditions, the investor stands in a better position to recover his invested money. Not only that, but you also stand a better chance of making a healthy profit in the process, which will help grow your IRA.

High Profitability

The low property prices have made highly profitable investment ventures more feasible. Besides purchasing fully constructed properties, investors may also purchase raw land and build on it utilizing IRA new construction loans. Another program available is utilizing an IRA loan to purchase and renovate a property. Once the property has been improved, it can then be put back on the market where it is resold for a profit. Depending upon the IRA loan program, borrowers may have to put between 25%-50% down, as a down payment. They can receive IRA loans to the tune of up to 50% of a properties purchase price plus improvement costs.

Whatever property you invest in, remember that it has to yield a high enough return for the lender to be willing to offer a non-recourse IRA loan. Therefore, look at real estate such as single family homes and apartment complexes. Avoid properties that require a lot of money for maintenance, for example, estates spread over large areas.

The market conditions prevailing currently are favorable to investors. If you don’t have the money to purchase real estate, apply for an IRA loan. These IRA loans offer many advantages over traditional mortgages and are therefore ideal for investors with a self directed IRA.

Corwin Smith - About Author:
For more information regarding IRA Loans, please visit Islandviewmortgage.com

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/loans-articles/why-this-is-the-best-time-to-buy-real-estate-with-ira-loans.htm

Related Loans Articles Subscribe to RSS

Short term loans bad credit: Meet Short Term Needs Timely
Published by Martin Bale on July 7th 2012 | Loans
Short term loans bad credit is the nice option of finance for you when you need money for small and ...
 
Car log book loans: Secured Way of Availing Money
Published by Abnre Cassa on June 2nd 2012 | Loans
Car log book loans are the collateral based loan deal where your car log book is used as security an...
 
Payday loans over 6 months: Enjoy Speedy Money with Convenient Settlement Process
Published by Davis Mllen on June 8th 2012 | Loans
If you want such a loan support that can be paid off through easy monthly settlement process, you ne...
 
3 month loans no credit check- Get cash despite poor credit record
Published by Lee Lister on January 24th 2012 | Loans
3 month loans no credit check are unsecured, collateral-free, and short term loans. These loans are ...
 
Payday loans Ohio- Great financial help for US borrowers
Published by Ricky Loyel on July 23rd 2012 | Loans
If you are taking quick funds via payday loans Ohio, you would be availing quick funds. This loan wi...
 
Emergency bad credit loans- Real financial solution for bad credit people
Published by Alan Cruzs on July 17th 2012 | Loans
If you are taking emergency bad credit loans, you have facility to fight against fiscal worries in n...
 
Fast loans no credit check- Grab quick funds before payday
Published by Ponting Sarad on June 8th 2012 | Loans
If you are having bad credit records then it is better for you to avail fast loans no credit check. ...
 
Long term bad credit loans- Use availing money for longer period of time
Published by Jaker Kmith on June 16th 2012 | Loans
By availing long term bad credit loans, you can utilize money for longer period of time to meet cash...
 
Payday loans for self Employed: Good Support for Self Employee
Published by Jaken Smeth on March 22nd 2012 | Loans
One running own business doesn’t need to feel uneasy as he can also make a request for payday loan...
 
Online instant loans same day- Opportunity to get instant funds
Published by Ross Futher on July 20th 2012 | Loans
By availing instant funds via online instant loans same day, you can meet unexpected fiscal worries ...
 
Payday loans no checking account- Great financial aid for all
Published by Morgan Sadyu on July 4th 2012 | Loans
If you are acquiring quick money from payday loans no checking account, you can easily resolve unexp...
 
Direct deposit payday loans- Apply and get quick cash now!
Published by Alton Bells on June 7th 2012 | Loans
By acquiring instant funds via direct deposit payday loans, you have the right option to meet unfore...
 
Payday loans with a debit card - Valuable loan for debit card holders
Published by Nain Seek on July 9th 2012 | Loans
If you are applying payday loans with a debit card, you will easily grab instant cash in order to ma...
 
Payday loans Georgia- Unique cash advance for US borrowers
Published by Denis Deny on June 9th 2012 | Loans
By availing instant funds via payday loans Georgia, you can meet unpredicted fiscal woes with ease....
 
Direct deposit loans- Good financial aid for borrowers
Published by Rex Moshe on July 3rd 2012 | Loans
If you are getting quick funds via direct deposit loans, you can manage unexpected financial trauma ...
 
Qualify for a restaurant loan with Visa/Mastercard
Published by Mathias Scott on May 14th 2012 | Loans
The restaurant business is a tough one considering the kind of competition one has. Being able to ra...
 
No credit check loans: Appropriate funds to deal with instant financial needs
Published by Alastair Stewart on January 10th 2012 | Loans
No credit check loans can be used by applicants having serious credit problems. The loans are easy t...
 
Instant text loans- Instant Cash Help for Emergencies
Published by Herly Smith on December 3rd 2011 | Loans
Instant text loans can be availed easily with a simple online application form. No unwanted faxing t...
 
Student loans with bad credit- Perfect credit support for students
Published by John Simen on July 2nd 2012 | Loans
If you are availing quick funds via student loans with bad credit, you can meet higher education in ...
 
Cash call loans- Truly helpful for borrowers
Published by Rocky Ales on April 6th 2012 | Loans
By availing quick cash through cash call loans, you can easily manage financial emergencies without ...