Rep. Ron Kind, D-Wis., and Rep. Dave Reichert, R-Wash.,...
The following article was written by Jim Reid, an experienced short-sale realtor in Palm Beach, Florida. At Reins, we were honored to be mentioned in the article and to work with Jim on this transaction; he and his client were both truly a pleasure to work with and wonderful people. For more information on the growing short-sale real estate market see our article titled, "IRA Investing and the Growing Short-Sale Real Estate Market" (link provided below).
How to buy real estate with your IRA
A lot of people have made fortunes in real estate by buying during times of economic downturn. As you have heard, current prices for real estate in Florida are at historic lows. While this presents a problem for many, it also creates a potential golden opportunity for others who are interested in purchasing investment property at rock bottom prices. The short sale and foreclosure inventory is still extensive and great deals can be had for those with patience and cash. Many banks are reluctant to extend credit on these properties but there is a way to access funds for investing in real estate that most people are not familiar with and that is exactly how a client of mine recently purchased a property.
Jane Smith (not her real name) was concerned that all of her retirement money was invested in the stock market. She had built up a nice nest egg from more than thirty years of working in the corporate world but her IRA Rollover was not as diverse as she wanted it to be. Because she still has more than 15 years until retirement, Jane wasn’t willing to just let all her money sit in CDs, or low interest money market funds. She decided to keep some of her money in the stock market, keep some in cash equivalents and invest some in real estate.
With my help, Jane found a two bedroom/two bath condo in the gated community of San Matera in Palm Beach Gardens that was a short sale listed at $100,000 for which the sellers had paid more than $250,000 in 2005. Jane put a contract on the property in August 2009 at $95,000. Jane then enlisted the services of Reins Financial Group (Reins) in New York (www.reinsfinancial.com), which specializes in helping individuals to take active and efficient control of their retirement dollars. She then sold some of the stocks in her IRA Rollover and had the funds transferred to a new IRA Rollover account in anticipation of the upcoming closing. Reins handled all the paperwork to help Jane establish an IRA LLC* and a few weeks ago, she closed on her condo for $95,000. (Two bedroom/two bath condos in the San Matera complex are currently renting for approximately $1100 per month.)
This provides an incredible opportunity for savvy IRA investors to purchase properties at bargain prices. Distressed property sales reached 48.1% of home purchase transactions in February 2010, a large jump from the last recorded number of 37.3% in November 2009.
By working with an experienced short-sale realtor who is familiar with alternative strategies (such as the one used by my client, Jane, to tap into IRA funds) real estate investors can take advantage of unprecedented buying opportunities.
Give me a call today at (561) 746-4466 to discuss how I can help you locate investment properties that fit your needs.
*By utilizing an IRA LLC strategy, Reins IRA holders can invest in alternative assets with the ease of writing a check. With an IRA structured by Reins Financial Group you can hold any asset the law allows, including alternative investments, such as real estate, private placements, other private transactions, oil and gas partnerships, or commodities with the ease of writing a check, without triggering early distribution penalties and income taxes. Reins IRA holders invest retirement funds with the same ease and efficiency they would with non-retirement funds and never pay asset based or transaction fees. For more information, please visit www.reinsfinancial.com or call (347) 291-1295.