Self-Directed IRA's Looking at Foreclosures
Friday September 14, 2007
The owner of a self-directed individual retirement account (IRA) is allowed to invest in real estate. There are those who have taken it to a new level by investing in higher interest short term loans to investors and flippers.
Where state usury laws allow it, some investors are garnering 15% or higher interest on these loans. This higher risk interest is usually for very short term loans for fixer-upper or remodel projects. Some of these retirement investors are now looking at the possibility of foreclosures. However, not all of them are fearful of owning a home at 50% to 70% of market value. The current foreclosure glut could ruin some early retirement plans, especially if the IRA owner isn't prepared to move from passive investment to hands-on housing rehab.
I found this site to be a very good site for self directed IRA investors. http://www.myrealestateira.com
Another good resource for investors looking to set up a real estate IRA to snatch up foreclosures.
I have used self directed IRA to invest in real estate and real estate notes and had great success with it. Here is another good article on the topic.
Article: Investing in Real Estate, Notes and Trust Deeds with an IRA
Invest in what you know best, and always be conservative with IRA investments.
If you are a cash buyer and not living in arizona’s maricopa county (home of Phoenix), I recommend checking out this site for access to a daily list of trustees sales, the top picks from a foreclosure experts, in which they offer turn key auction bid service (represent you physically at the auction houses).
Foreclosures Phoenix