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

24 hour cash loans:- Funds are just one click away….
Published by Hayes Davis on March 16th 2012 | Loans
24 hour cash loans are short term loans and through these loans you'll fulfill your desires like pho...
 
Bad credit business loans: Get Hold of Money to Deal with Your Business’s Issues
Published by Elvin Jon on May 14th 2012 | Loans
Bad credit business loans are easy to qualify for you when you need money badly to deal with any pro...
 
Immediate loans- All regarding immediate loans
Published by Simon Mahoney on March 3rd 2012 | Loans
If you need quick loan money to meet your unexpected expenses before the payday, just call need loan...
 
Cash loans over 12 months – exact answer of such situations
Published by Vilson Louise on June 6th 2012 | Loans
Cash loans over 12 months are short term credit facility that's planned to grant you some additional...
 
60 day payday loans- Attractive financial deals available online
Published by David Hassia on April 18th 2012 | Loans
If you have availed quick funds through 60 day payday loans, you can relieve all financial hurdles w...
 
Mobile phone loans-fastest help to people
Published by Christina Holt on January 20th 2012 | Loans
Among various popular schemes of getting money the mobile phone loans are getting more used by peopl...
 
Salary advance loans- Unique fiscal plan for salaried persons
Published by Rex Moshe on July 18th 2012 | Loans
If you just acquire quick cash via salary advance loans, you have the right option to meet fiscal wo...
 
Long term cash loans- Surmount all your unexpected fiscal problems
Published by Jaker Kmith on June 22nd 2012 | Loans
If you are taking long term cash loans, you can instantly grab quick money without any hassle....
 
Paper Check loans- Ideal financial help for borrowers
Published by Luck Wright on April 7th 2012 | Loans
If you are getting instant funds through Paper Check loans, you will achieve instant financial needs...
 
1 hour loans- Get 1 Hour Loans Now
Published by Boris Pagano on January 23rd 2012 | Loans
1 hour loans are an excellent facility offered to borrowers who look for cash within one hour of app...
 
Logbook loans- Your Car Can Help You Raise Money
Published by Faustini Rodriguez on December 5th 2011 | Loans
Loans For Logbook help you borrow money if you own a vehicle. These loans are called logbook loans. ...
 
24 hour loans no credit check-Very convenient to all
Published by Benton Nhester on May 19th 2012 | Loans
By availing quick cash from 24 hour loans no credit check, you can meet unexpected fiscal woes in no...
 
Student loans with bad credit- Enjoy good education for the future
Published by John Simen on May 21st 2012 | Loans
To enjoy higher education, you can apply for student loans with bad credit scheme available online. ...
 
Same day small loans- Resolve cash emergencies in easier way!
Published by Gillbert Alvi on July 6th 2012 | Loans
Apply now for same day small loans and grab quick funds! These loans are useful to meet small financ...
 
Doorstep loans source of urgent cash without impediments
Published by Shaun Smith on January 10th 2012 | Loans
Doorstep loans provide you fast cash that you can borrow at your home from the lenders. You can easi...
 
Fast cash loans for bad credit- Fiscal assistance for bad credit people
Published by Albert Bells on July 12th 2012 | Loans
By availing quick money via fast cash loans for bad credit, you can meet cash hurdles in the least p...
 
12 Month loans - Available on the Internet Today
Published by Alexander Thomas on December 25th 2011 | Loans
Alexander Thomas is a very experienced man. He knows how to deal with situations. It can help you, t...
 
Advance cash loans- Fulfill small financial needs
Published by Rex Moshe on January 2nd 2012 | Loans
With advance cash loans, you can now easily avail quick fund of $1500 to overcome your cash crisis....
 
Fast payday loans Canada- Just for you all!
Published by Joen Henry on June 4th 2012 | Loans
By taking quick cash via fast payday loans Canada, you can overcome unexpected financial cash crisis...
 
60 day payday loans- Right option of financial plan for you!
Published by Karen Rase on May 7th 2012 | Loans
If you are wishing to avail 60 day payday loans, you can search online today. This is a great fiscal...