401K and Real Estate Investing – A Simple Wealth Strategy

Here’s a simple wealth strategy you can easily implement by using your IRA or 401K and real estate investing.

Step One- Roll your funds into a self-directed IRA (Individual Retirement Account)

The first thing you need to do in order to combine your IRA or 401K and real estate investing is to roll your available funds over into a self-directed IRA. This is nothing more than a regular IRA account administrated by a company that allows you to determine specifically how and where the money is invested.

A Self-directed IRA, also known as a Checkbook IRA, allows your funds to be placed into a checking account, giving you far more flexibility and “liquidity” than with typical retirement accounts. You can then use the funds by simply writing a check, combining your IRA or 401K and real estate investing.

There are several sources and providers of self directed IRA accounts. Use online search resources for assistance in locating them. One such company, highly respected for combining your IRA 401K and real estate investing, is Equity Trust Company.

Step Two- Determine your investing criteria

Before you start using your IRA or 401K and real estate investing together, it’s important to think through your investing criteria. What kind of real estate investor do you want to be? Do you have the temperament and financial resources to hold and rent property, or are you better suited to quick-turn real estate? Does rehabbing suit you, or are pretty houses more in keeping with your skills and abilities?

These are vitally important questions, and the time to ask and answer them is before you start using your IRA or 401K and real estate investing.

There are lots of online resources for helping you make these kinds of decisions. I’ve written another article that can help you determine which type of investing is right for you. You can find it at Best Income Opportunities.

Once you’ve determined the type of investing you’re suited for, you’ll know what types of properties fit that criteria, and you’ll be ready to start using your IRA or 401K and real estate investing.

Step Three- Locate a property that fits your investing criteria

Now is the time to hunt for properties that fit the investing criteria you’ve established for yourself. When you’re just beginning real estate investing. I would stick to single family homes and small multi-units (1-5 units). Leave the larger apartments and commercial properties until after you’ve gotten your feet wet in IRA / 401K and real estate investing.

Find and work with a good Realtor who can help you locate properties that work for you. Look for value in your real estate investing… in other words, buy for well under retail. Buying value is the secret to success in this business, and builds instant equity.

Step Four – Let your Account Administrator walk you through the first few transactions

The companies that administrate self directed IRA accounts know their business well. They have a vested interest in helping you succeed with IRA or 401k and real estate investing. Make use of their expertise and let them hold your hand through the first few purchases you make. They will help you avoid landmines you would never see otherwise.

You will need to follow the specific rules for IRA or 401K and real estate investing, and one of those rule is that all monies paid related to your property must come from the self-directed account. That means that every expense, no matter how small, must be written out of your self-directed IRA checkbook. Also, the property must be bought, sold, and held under the self-directed IRA.

You can see from these two examples that the rules can be complicated, although not so complicated that you should let it stop you from investigating this exciting and lucrative investing niche. After all, by combining your IRA or 401K and real estate investing, you can watch your nest egg grow exponentially, while avoiding the tax man’s big bite.

That’s it… four simple steps to building wealth using the incredibly powerful combination of your IRA or 401K and real estate investing. As it says on the shampoo bottle in your tub… lather, rinse, repeat!

Now, go make more offers!

Is Real Estate A Great Passive Income Business? Finding The Right Investment Opportunity Is Crucial

Real estate is a lucrative business field in all aspects, especially if you know how to sell properties or rent them at a competitive rate. Many entrepreneurs prefer investing as real estate business always deals with a lot of money. You won’t lose money if you follow the basic rules, at the same time you will be able to make your living from the passive real estate income source.

If you’re interested in developing a passive source of income with positive cash flow, you should consider investing in real estate properties. Let’s explore how real estate passive income source can help you make decent earnings without major efforts or business involvement.

Is real estate a great passive income business?

* If you have a good amount of money in your bank account, it’s a great idea to buy a property and rent it out. This will definitely make you more than the interests paid by the banks. Just advertise your rental offers in the local classified websites and newspapers to get suitable tenants for the house. At the same time, the value of your property will also increase over time. It’s profit in both ways.

* As the price of the property will gradually increase over time, you can sell the property later. You can also do something more creative. First buy a house or foreclosure property, make necessary changes to the property and list the property for sell at a higher stake. Meanwhile, you can rent the property and take profit out of it. At the same time, you will be able to search for potential clients interested in buying the house.

* If you have extensive idea about the area and the properties available for sale, you can definitely start promoting others houses and lands and earn commissions from the successful deals. If you don’t have a good sum of money to invest on these properties, you can play the role of a property broker and make profits by selling others properties.

* Nowadays, real estate business is moving towards corporate and commercial properties. If you have experience and association, you can take larger projects and play games with higher stakes. The investment in such cases are much higher, but the profits are almost double too! Make sure the property you’re working with has already received few proposals from the commercial foreclosure developers.

All these methods can help you create an income funnel in the real estate business industry. Try to explore the industry in a comprehensive way. This will reduce the risks and increase your profits.

Investing in real estate business: facts you must explore

* You must have a comprehensive idea about the properties in a specific area. Otherwise, you might end with a bad property investment. Take time to re-explore the area before investing a penny.

* Try to communicate with the experienced realtors in your local. They will help you learn the basic rules and legal issues. You will also be able to learn about the competition and association in the region this way.

* Take enough time to research. Learn about the property accurately. Consider exploring the history, previous house owner’s details carefully. This will help you make good, profitable property investments.