Invest in Real Estate with Your IRA?

re-happy-retired-coupleMost of our clients know that we are huge advocates of investing in real estate versus stocks, bonds, annuities, precious metals and do so even with our own retirement accounts. Even if the market crashes, you still have something that produces monthly income and that real estate assets can recoup its valuation and typically does not drop in value as quick as stocks. Some people get into real estate investing without the proper knowledge or mindset. They may become a landlord without knowing all the work that goes into it or they may lend money and then hold their breath until the 1st of every month hoping to get paid.

Here are a few tips that might help you in your quest for stability and appreciation in your retirement accounts using Real Estate:

  1. Learn about the location you are investing in. This becomes extremely important when buying rental property, as some areas may have unique circumstances or different rules that an investor will want to be aware of. For example, some communities have recently put a moratorium on evictions during the Covid–19 crisis, which most have now removed those moratoriums. Also, there are Tenant-Landlord Laws to be familiar with. In other words, know the rental laws in your area.

  2. Partner with a Pro – There are many good Real Estate Investment Companies like Sol Mar REI, LLC., that will welcome a financial partner as it helps them increase their portfolios and pay you a nice return on your money. If you’ve never flipped a house, going on your own can be costly. You might be thinking you are giving up some profit, but the headaches are less and money saved because of their connections, knowledge and experience are well worth it.

  3. Assemble a good team. Having a good Realtor, Inspector, Banker, Title Closer, and Handyman could save you time and money, and, could possibly open up investment opportunities you might not otherwise be exposed to. Another route is buying Turnkey properties, so you don’t have to do all that work.

  4. If you lend money, stay within a defined plan you are comfortable with. Many of our clients are successful lenders and the thing they all say is:

    1. Only lend to situations that you are comfortable with.

    2. Have a plan for what and who you will lend money to.

    3. Have a detailed collection policy.

  5. Don’t be afraid to use a property manager. When getting started, it takes a lot of heat off the investor as they establish a pattern for collections, repairs and leasing times.

  6. Don’t be afraid to use an investment company to purchase your properties. If you would like to know more about this, contact us!

Sol Mar REI, LLC., does everything from acquisition, renovations and management. This way you enter the world of Real Estate with minimal time and virtually no stress.

Luke

About Luke

Luke has 40 years experience in real estate transactions with a background in Construction, Property Management, Real Estate Brokerage, Mortgage Banking and Corporate Finance.
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