Tips for Investing From Within an IRA

I don’t know a thing about you but I’ll bet you’re either investing from within an IRA, or considering investing from within an IRA.

How do I know?
Because most of us right now are having to provide investment guidance for our future retirement. This is pretty common since most companies and employers are no longer overseeing employee retirement accounts, and if they are it’s a safe bet that they are looking to discontinue the practice in the near future.

That leaves our retirement safety in our own hands.

Whether your experienced with investing from within an IRA or are looking for information on how it’s done you’ll find these tips useful.

First be very selective when choosing an IRA custodian. These are the individuals, brokerages and bankers that are administrators of IRA accounts. Like anything else not all custodians are equal.

The fact is some are light years ahead of others in there service, experience and know how. Don’t let just anyone oversee your account. You’ll want experience and comprehensive knowledge of IRA’s and the rules and regulations that govern them. Oddly there are actually few custodians that have this type of knowledge.

An example of this is that what you can invest in when investing from within an IRA is surprisingly broad. However most custodians allow only a narrow area of investment.

This is actually because most are only educated on the traditional IRA investment vehicles such as stocks, bonds and certificates of deposit(CDs). You’ll want to find a custodian that allows clients to invest in the full spectrum of possible investments options just as congress intended you be able to. The truth is that many things can be invested in using an IRA. One example is real estate.

In fact real estate is a Little known investment that makes massive use of the tax advantages of IRA’s. And as strange as it may sound most custodians themselves are in the dark as to the rules to investing in real estate. This is one of the main reasons that real estate is not often taken advantage of when investing from within an IRA.

With real estate it’s possible to double or triple the money invested in properties within 1 or 2 years when investing from within an IRA. The tax free and tax deferred advantages of IRA accounts can greatly speed large gains.

But the key to this secret is knowing which real estate is a good investment and which are bad investments, this type of expertise takes years of experience and often comes with some hard knocks.

This is why most custodians and administrators don’t want to deal with real estate. The territory is to foreign to them since most are skilled only in traditional IRA investment options such as stocks and bonds. This brings about the need for a self directed IRA account, with a self directed Roth or regular IRA account you are able to direct your custodian to invest in which real estate you want to invest in.

Some people may have knowledge in this area and are able to analyze properties, do market research and all of the other due diligence necessary to use real estate to build retirement wealth quickly. But most people are not experienced enough in this area,to adequately make use of real estate when investing from within an IRA.

But there’s a secret tactic that smart IRA account owners are using to great advantage.

That tactic is to enlist the expertise of real estate investors who are experienced in using real estate when investing from within an IRA and are willing to show IRA owners the ropes. These investing experts are also rare because just as with knowledgeable custodians, many professional real estate investors have never even heard of using IRA’s to invest in real estate or are unaware how to go about it.

You definitely don’t want the advice of your local Realtor here, only a few seasoned real estate investors can guide you in this area

A final peace of the puzzle that you don’t want to miss is the need for a self directed Roth or regular IRA account so that your custodian and your real estate consultant can work together as a team to grow your investment account.

Now that you’ve discovered these tips for investing from within an IRA you can look into taking advantage of these little known tips for large profits.

Top 10 Tips for Investment in India

I thought, I must compile my top 10 tips to the audience who seek to “think through, rather than jump-act.”

Tip # 01                 THERE ARE NO TIPS !!!

Small investments into real estate SHOULD NOT be based on hearsay OR tips. I haven’t come across tips which have been accurately predicted the gains, unless somebody is manipulating it a la the stock markets. Remember – There are no sacrifices in real estate investments, and don’t expect any. Never be tempted by the “Once in a lifetime-limited period offer”. Ideally, create a portfolio rather than just accumulating property based on tips.

Tip # 02                 DON’T TRUST THE SELLER

When have you come across a seller who says that his product is not the best, or really value-for-money? Rather than go by what is represented, go by what is evaluated. Ensure that the valuation of the said property is projected properly for three milestones – Short, Mid and long term. Remember, you are making an investment and unapologetically, evaluate the growth of your money. A thought – Don’t buy all cash down in one go, as this exposes, and dissolves the responsibility of the seller, be it the broker or the developer / owner.

Tip # 03                 DON’T OVERESTIMATE / DON’T GET GULLIBLE / DON’T OVER-COMMITT

I come across many an investors who have sought abnormal returns from their small investments and have got caught between their initial investment and the commitments to further pay. To our prying senses, this predicament is the outcome of over-estimation of increase in valuation, committing more than what one can safely invest, without over stretching the available resources. Also, if your intent is to Dorent, never overestimate the returns, as your purchase price is going to be a function of the expected returns.

Tip # 04                 NEVER EXPECT UNEXPECTED GAINS

The promise of the seller of small realty investment is mostly multifold returns over other instruments of investments available. This is not always correct. Please benchmark a reasonable minimum ROI on an annualized basis, and be concentrating your strategy around it, rather than speculative higher returns. Speculations seldom deliver. Informed decisions are closer to the expectations. Wishful thinking is only a masquerade for the ‘not so pretty’.

Tip # 05                 DON’T KILL THE GOOSE BEFORE IT LAYS EGGS

For the returns to be delivered in small investments, it is but pertinent to take a mid to long term view. One has to be very clear on benchmarking and the time to exit. Do not exit on the expectation of better results in yet another project, based on tips from any source. Differentiate between the products and projects on offer.

Tip # 06                 WHAT IT COULD BE, RATHER THAN WHAT IT IS

Like they say-the three golden indicators of sound real estate investment is – “1) LOCATION. 2 ) LOCATION.

3) LOCATION”. Make sure that you are able to visualize what would be developed, rather than what is promised to you by the seller. NEVER IGNORE THE RISKS, AND, LOOK JUST AT THE PROJECTED RETURNS.

Tip # 07                 DON’T EXIT WINNERS AND BUY LOSERS

Though taking a critical view of your portfolio is very important, it should not so happen that on a promise of better return, one tends to exit a property which is towards the maturity of the appreciation. Please ensure that the value appreciation graph has plateaud on the existing investments, before deciding to withdraw from the same. The biggest mistake is not to admit one. Don’t repeat past mistakes.

Tip # 08                 THE PEOPLE BEHIND

Be it the developer, the builder, the realtor or the canvassing consultant, be sure that they are presenting the GROUND-REALTY, rather than sell the dream. Ensure that they are backed by sound research on the subject, and have the ‘intent & ability’ to translate vision to reality. Do they have the motivation, the vision, the cash flow, right partners etc.? Also, for the managers amongst the buyers / investors, remember, it is the 5th P of marketing which drives the first four. Ideally, other than the seller, be sure of the ground realty of the project through a consultant, who can be unbiased in the analysis and recommendation.

Tip # 09                 INNOVATION AND VALUE SELLS

As consumers for various products and services in our daily lives, we do notice and track the technological advances, the product innovations etc. Why not the same for real estate? As we understand, if you make an investment, even for the long term, your purchase would come up for sale in sometime in the future. And if the buyer then does not see any value, he won’t offer you the price you wish to command. Hence, be sure that what you are planning to buy today is innovative enough, to make a value proposition tomorrow. Remember, every property is created for occupation, not investment.

Tip # 10                 DON’T BE AFRAID TO ASK AND ACT

My colleague Harry’s favourite advice to client is – DON’T HAVE PERCEPTIONS ON THE VALUE, DEBATE IT. We strongly recommend that as a buyer, please pose all the questions that you have to the seller or recommending agency, so that you make an informed choice, rather than an impulsive one. Once convinced, ACT immediately. Having said some of the facts above, we also experience instances of a lot of prospective investors being afraid to take the first step.

The classical joke that we share amongst our colleagues is that a striped ass cannot ever run like a zebra. If you want to bet on winning derby, know the pedigree.

The same holds true for the developers, the consultants and the brokers. Make sure you bet on the winning one.

The author is the Director-strategic consulting of Trustbanq Realty Ltd, a real estate consulting organization based out of Gurgaon, India.

Real Estate Investing Tips For Profit

Investing in real estate has long been considered as a safe and high return investment. “Flipping” in real estate investing has become very popular over the last few years especially among the speculative real estate investors. Flipping refers to the buying and selling of real estate property within a short period for quick profits. Though the return on investment appears to be good, there is still a risk that your money could get locked-in in the absence of buyers.

Real estate prices have steadily increased since the beginning of this decade. However many signs point to the real estate boom coming to an end, so it may be wise to put real estate investing on hold. Investing in real estate, contrary to popular thinking, is a slow yielding investment. Hence real estate investors need to do proper planning and to conduct market analyses before investing.

Before investing in any property it is vital to study all the related documents of the property, to see the license of a broker if any, to check for liabilities etc. All contracts have to be in writing. All details such as the names of all parties, address of the property, area, purchase price, consideration etc. have to be entered in the contract along with all parties’ signatures. It is also prudent to hire a property lawyer to look into the intricacies of real estate contracts.

One good way of investing in real estate is to buy foreclosure properties. Foreclosure is the process in which a bank or a creditor sells the property of the homeowner to recover the loan, which the owner has not been able to pay back.

A lease to purchase contract is considered the best type of real estate investing. This type of contract basically allows the tenant to lease a particular property for some period, and at the end of the period he has the option of purchasing the property at an amount decided at the signing of the contract. The tenant pays an initial non-refundable deposit. If the value of the property goes up at the end of the leasing period, the he may want to buy the property at its original value. If the value has not increased he can opt not to buy it. During this period he can also rent the property to someone else. By this method, the investor takes a lot of the risk off himself as he does not have to commit a large sum of investment capital not apply for a big loan.

Currently, there are a few areas where the real estate market is just too overheated and investing in real estate is just too risky. They are Miami, Las Vegas, Northern Virginia, Phoenix, Sacramento, Boston, Washington DC, and San Diego. Other “hot” areas also include San Francisco, Chicago, New York, Los Angeles, and Seattle. The safer, less volatile areas for investing with good ROI are Dallas, Cleveland, Houston, Columbus, Omaha, Kansas City, and Pittsburgh.

Investing In Foreclosure: Tips For Getting Started

The latest information on the high profile real estate market can sometimes be difficult to find, this is frustrating for most people, especially those facing foreclosures and looking for some help. With a growing number of websites that are, focusing on helping those in trouble, and facing a home foreclosure help is becoming easier to find everyday.

Here is some of the latest news going into 2008, the market as become a buyer’s heaven especially for investors, one that are looking for “pay dirt” in real estate. The ROI, or “return on investment” for real estate is very high, and making a substantial profit quickly is easy to do, if you have the right tools and information. Property values are a high-ticket item, therefore investors have the ability to make a large amount of money with just one transaction. Historically real estate is one of the most stable industries for investing; there are only a few instances, in which the property value is actually decreasing. Time is one factor that will heal a distressed market; so long-term investors are quick to buy the properties that offer the greatest potential ROI.

Home foreclosures are at record highs in many major metropolitan areas, and the outlook for 2008 does not look good. There are reports that home foreclosures may reach an estimated 3 million in the US by the end of 2009. Investors that look for the properties that need a bit of work, fix them up and sell them at a higher rate may prosper the most.

Before you jump into the market, make sure that you have the resources and a solid understanding of the industry, market conditions, competition and the local laws is a good place to start. Confusion is part of the learning process, take a deep breath and do not get disappointed, real estate has been around long before you and it is not going anywhere in the future. Upon doing some research, more research and even more research you will have a solid understanding of the market and what you need to do.

Some initial guidelines to get you started, home flipping is probably the most lucrative type of real estate investment to get started in. Home flipping is a simple concept, buy low, renovate and then sell high. High profit potential is very possible with the right property. Buy an old, cheap or even a foreclosed home that is in distress, fix it and flip it.

The key to flipping houses depends on a number of factors, location, market conditions, price and the quality of the renovations. Cost is by far the most important factor in flipping houses, preparing a proper budget and sticking too it will go a long ways to ensure that you end up with a profit. Lack of budgeting and planning will most likely get you into a bad position and you could even end up losing money when you are done.

Beginner’s Guide to Silver Investing – 7 Tips to Help You Make More Money with Silver Right Away

Recently, I met the owner of a well-known precious metals web site and I popped this question to him: “What do you think about investing in silver?”

His reply was both profound and accurate. “David,” he said, “The smart money is moving into gold, but the SMARTEST money is moving into silver!”

Investing in silver is a great way to make money, especially if you are looking to secure your future or your retirement. But of course, just like any type of investing, there are no guarantees. You need to know what you are doing and what the silver market is all about before you can get too involved. This is the only way to make sure that you give yourself every possible advantage to benefit from silver investing.

That’s the ONE and ONLY reason that I am here today. I want to share with you some tips that will give you direction when you start investing in silver so you can make the most money possible.

7 Getting Started in Silver Investing Tips That Will Make You More Money

1. Take a close look at the market before you decide that silver investing is right for you. Investing is silver is different than investing in stocks and bonds.

2. Educate yourself. If you are not sure how investing in silver works, touch base with a professional who can help you with the buying and selling process.

3. Complete effective online research. Be careful of the information you find. There’s so much information online about silver investing, but a lot of it is misinformation. You want to learn from experts who are in the trenches tracking the silver market and making investments every day. For example, the information that you will find on http://www.silver-investor.com is based on my experiences and knowledge from following the silver market daily for more than thirty years.

4. Get familiar with the many different ways that you can invest in silver. You can invest in silver mining companies, silver ETFs, silver futures, silver bullion and silver coins. The sure-fire way to invest in silver without the worry is to invest in bullion or coins. This is the place to start– real metal for your future. You don’t have to pay for a mining company’s energy costs. And you don’t have to buy 1000 to 5000 ounces in a futures contract that carries too much risk for a beginning silver investor.

5. If you are looking to invest in silver coins and silver bars then you need to know this trick — Find sellers who are actually selling as near the spot price of silver as possible (spot plus a reasonable fee). A general rule is that the more silver you are buying the less percentage of fees you should be expected to pay. When buying coins to invest in their silver content be certain you are not buying coins for their numismatic value (the value to a collector of rare coins).

6. Before you invest in silver, make sure you calculate how much you can invest between your IRA rollover funds, cash on hand and other assets that you wish to turn into silver. Be sure to keep your emergency fund mostly in cash for unforeseen expenses. You don’t want to bite off (invest) more than you can chew (afford).

7. Stay on top of the market. There are times to buy. And, there are times to sell. Yes, at some point, it may be better to sell some or perhaps even all of your silver holdings for currency, depending on the bull market and your personal investment goals. But the only way you know when to buy or sell is if you have current silver market investing information at your fingertips.

Here’s a Bonus Silver Investing Tip For You…

Get started now. The time to invest in silver is today!

What are you waiting for?

Put my tips into action and start investing in silver right away.