by john krol
Boomers-Bank The Investor’s Guide to Commercial Real Estate and Retirement Planning How to Invest In Commercial Real Estate Using Your IRA or 401(k)Maximize Your Profitand Save For Retirement
Boomers-Bank Introduction Why invest in real estate using your retirement plan? In this book, we’re going to discuss several concepts for buying real estate using IRAs and 401(k)s; the socalled nontraditional investments. Let’s start by asking what advantage is there to all of this? Why not just let your IRAs and 401(k)s sit around and do whatever it is they’ve always done? Well, you can secure tax-deferred or tax-free income for one thing. Anytime you have a profit or a gain, either you are not paying taxes on the gains until you start using the money, or if it is in a ROTH IRA, you aren’t paying taxes at all. By having real estate in a retirement plan, you are also avoiding what’s known as capital gains every time you sell property. Your money is allowed to accumulate and your interest will compound. Moreover, you can put all of the money back into your next deal. However, you’ve got to bear in mind the current state of the economy. Money doesn’t just sit around these days. In most parts of the world, the dollar is losing value at a pretty alarming rate. The United States is a country at the edge of a financial and economic precipice, owing trillions of dollars to other countries and borrowing money against, well, the value of its existing borrowed money (we’ll talk about this later). The infrastructure of the United States is at present rather unorganized. We aren’t producing much and so we’re importing more than we’re exporting. It’s basic mathematics. Notice how the prices of food and gas have been rising recently. That should give you a pretty clear idea of what’s going on and what is likely to continue to happen (we’ll also talk about this a little later on). The main focus of this book, however, is to demonstrate the value of nontraditional investment choices for 401Ks. Our goal is not only to introduce you to the reasons why these choices are advantageous, but it is also to explain the particulars of the related processes. For the sake of helping you confront your financial advisor or accountant, we’ll discuss the various strategies for undertaking this type of investment. We also plan to take you through the processes for finding appropriate real estate to undertake the actual investment. Since the property market can be a bit difficult to navigate, particularly if you’re a beginner, we’ll allow you to benefit from our wealth of experience and wisdom on the subject.
We need to establish here why most people don’t invest their 401K, despite the fact that it is a very sound financial move. Firstly, what most average Americans do not understand is that you and your IRA/401K are two separate entities. Repeat: you are not one and the same, nor are you in any way, shape or form joined at the hip. You will need to absorb this fact so you can begin to understand how to actually structure a deal with your IRA. If you don’t take the time to learn the difference between you and your retirement plan, you’re going to spend a lot of time wondering, “is it me, or is it this plan that owes this money and needs to pay this bill?”. Let’s avoid confusion. Depending on the particulars of the loan you broker, the answer to this question, who owes the money, will be quite different. The next concept you need to bear in mind is that you and your IRA/401K, being two separate entities, have a third-party administrator for all of your deals. All deals involving your IRA or 401K will thus have a third party acting as a recordkeeper, administrator and a custodian or trustee. They will be the entity that is actually holding the money as well as the person who must meet government guidelines and regulations to be able to hold your retirement money. That said, let’s move onto the specifics of IRAs and 401Ks. We’re going to mention these entities quite a bit throughout the book, so it pays to be clear now. An IRA is a place where you can keep your assets for retirement, basically all the money that will see you through when you are no longer working. What most people don’t understand, however, is that you can pour into your IRA whatever type of investments you want, while your assets can take any one of a number of forms. It is important to note though that your IRA is not an investment in itself. Next, let’s take a look at non-traditional investments. Of course, retirement planning is a big issue for a lot of people. Most people, when they think about it, consider themselves limited to stocks, bonds, mutual funds, and the like. There’s a general consensus that these are the types of things that we should be investing our money in so that it will grow in the years that we’re working, giving us something to fall back on when the time comes. What a lot of people don’t know, however, is that these investment types are not necessarily the best option. They certainly aren’t’ the only option.
Non-traditional investments such as real estate, notes, foreclosure properties, rehab properties, and other things along these lines, may actually be much more viable investments for the baby boomer generation. In this book, we’re going to explore the ways you can go about investing in real estate for maximum efficiency and return. By law, there are only two things you cannot put in a retirement plan: you can’t use retirement money to buy life insurance and you can’t put collectibles, such as art work or antiques, into your plan, not that most of us have to worry about these types of things. Long story short, the IRS gives you a pretty free rein. They let you be your own advisor and best financial friend when it comes to retirement. Many people believe that they already have a self-directed plan for their retirement, particularly if they are working with a brokerage firm. There is some truth to this. While you select your own mutual funds and stocks in many cases, most brokerage firms won’t allow you to invest in real estate or notes. Thus, they usually have a limiting plan for investment. Unless you take something of a do-it-yourself route, real estate investment options using your 401k or IRAs are actually quite limited. To purchase such nontraditional types of investments within your retirement plan, you need to be allowed to self-direct. The person or entity holding your money, the custodian, must allow you to self-direct. One of the perceived disadvantages to self-direction, of course, is that you are assuming responsibility for how well your retirement plan actually does. You can, for example, pick the wrong stocks and bonds and hence secure nothing but financial losses. Thus, you can end up jeopardizing your future if you don’t take the right approach. On the other hand - and let’s now consider an example - you can save yourself a lot of money by acting in a financially sensible and knowledgeable way. Consider the case of Ms. X. Working as an investment advisor, Ms. X has been investing stocks and bonds for many years in her retirement plan. Her plan, like most of her contemporaries, is driven by traditional types of investments. During her working life, Ms. X has invested a good deal of money in real estate. In fact, it’s become something of a hobby to her. However, one of the problems with such an approach is that she had to pay taxes on the profits she made from her real estate investments. Using her retirement plan to make the investment, however, Ms. X discovered a way of avoiding these issues, as a number of other savvy individuals have done before. Real estate investing is nothing new as a means of acquiring wealth; it is a practice that has been popular since the beginning of recorded history. Most of the wealthiest people in history have either secured or built the bulk of their wealth using real estate. Land had always been the defining possession of the nobility in the vast majority of early socio-economic systems. Even during times of war and economic depression, land and property have tended to hold up as strong sources of wealth. Hence, it is safe to say that things are unlikely to be much different these days. However, despite the popularity of real estate and the many centuries of experienced buying and selling, even some of the most savvy investors are still unaware that they can use their retirement plans to invest and thereby save themselves from capital-gains’ taxes and other such annoyances. Although many people claim to feel ‘trapped’ by traditional investment options, the vast majority of them are totally oblivious to the fact that real estate is available to serve as one rather convenient nontraditional investment commodity for use in individual retirement plans (IRAs) and 401(k)s.
The dual advantages of real estate and IRA/401(k) investments are overlooked. The only requirement of the IRS is that you have a custodian for your IRA or other retirement plan, which we will review. Beyond that, you are free to use your IRA or other qualified retirement plan to invest in real estate. You can also use your plan to keep your real estate investment, earning money and limiting what you have to pay in taxes. Since 1975, one has been able to use Keogh plans, now known as qualified plans, to purchase real estate as a tax-deferred investment option. With the increase to allowable contributions, simple employee retirement plans have become popular as well. In 1997, Roth IRAs further enhanced the popularity of tax-free investments. In 2006, the establishment of Roth 401(k)s made it possible for deferrals to be made regardless of salary amounts. At this point in time, the long and the short of it is that investment options are phenomenal and as we shall explore soon, the need for making sensible investments has never been greater. Whether you currently have retirement funds or you’re looking to set up funds for investment purposes, the time is right for you to make an investment in real estate using your IRA or qualified retirement plan. This book will show you how. This unque book has a retail value of $35,000. When included with our one on one coaching program–so enjoy and If it were me I would the entier book as this will be the only time this marketing promotion will happen… The book will continue with he next post you can go to blog.IRA-401K-RealEstate.com and request the entire ebook with all the charts pictures and examples.
Use is possibly the most important factor when one is to make a purchase. Combine that with customer profiling, and you have the recipe for success. However, always remember that you shouldn?t venture outside your comfort zone unless you absolutely have to. Comfort zone here refers to areas with which you are familiar and have possibly had experience in previously. This point is important always but even more when you are initially starting out as a real estate investor. When starting out, stick to what you know and try out new things only when you feel you have a handle on the situation. And always, always, keep your eyes and ears open to absorb whatever information you can about your location so that you are never left in the dark.
About the Author:
http://www.ira-401k-realestate.com/IYF-Video-Opt-In/ This book will change your life and that of your family its a must read if you care whats going to happen and how you can make the best of it. Just do it read the book request the entire ebook and explore the video’s you will thank yourself
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Thursday, August 14th, 2008
by Pius Victor .E
Although it can be risky working for yourself, it would appear this is not deterring people who are frustrated with their regular jobs from having a go at making money online instead. Because everyone is different, there is no easy answer to which method a person should or should not use as they can all bear fruit given enough time. Before you can move ahead you need to decide what skills you can offer the Internet; two well tried methods are used in this article. Remember, always give you customers a little more than was promised and all you have to do is find out what they want.
One of the most popular methods of making money online is by affiliate marketing where a person becomes an unpaid (commissions only) salesperson for a company, internet or otherwise and is paid for sales, or on occasion leads. There are many advantages to this but the most important is that the affiliate does not own the company and only has the task of finding sales to earn money. The hardest part of this is finding a company you know will be there in years to come so you can enjoy a good relationship with them and not have to keep swapping companies. Huge sums can be earned from a single sale depending on the product but you can expect anything up to seventy five percent or more for some programs; just beware of those with only a few percent as they may not be worth the effort. Of course the greatest benefit for an affiliate to make money online is there is no need to own a product or keep any stocks so it is capital free.
Google’s adsense program is the other major method of making money online where they place adverts on websites they hope will attract people to click on. This is a free program to join and when these adverts that are on your website are clicked, a small percentage of the revenue generated, goes to the account owner. This is the system described very simply but you need huge numbers of visitors to your site (probably a number of sites) to generate an income. Any one may become partner with Google’s Adsense program to work towards a common goal but Google has a whole list of terms and conditions that must be adhered to.
Google are very strict regarding their terms for the adverts placed on any site and can easily stop payment so check their terms and conditions regularly. Most people just want to make money online to supplement their own income or it could be to build a viable long term business but ensure you know why you are doing it from the start. Some research and study is required to learn techniques of getting people to come to your site and many resources are available online, many of which are free. Joining the warrior forum should be one of your first places to carry out research as most internet marketers are found here and a great deal of experience is available for novices and professionals alike.
You don’t have to be a computer expert to be able to make money online, or even have your own website or your own products to sell. Although this is a good idea at some point in the future in order to generate more income from your efforts. What is needed to be successful online is, getting the right information, implementing those informations rightly, and determination to succeed.
About the Author:
Before you go over to warrior forum full of excitement, l have two eye opening gifts for you. I have put together for you eye opening reports on The 8 Step Formula To Online Success and How To Increase Affiliate Sales. Go over to
http://oneminutesites.com/netwealth right now and download the reports.
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Thursday, August 14th, 2008
Are you having problems with allergies to dust mites? Dust mites can be controlled in various ways. For more information, see this dust mite video.
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Thursday, August 14th, 2008
by Rob Carlton
It?s easy to make a hole in the wall, but it is just as simple to repair that hole too. You will want to follow the following tips so that you can patch your wall up and no one will ever notice that there even was a hole there.
First you will need to determine the size of your hole. The difference will require added steps, so it is important that you use the appropriate method by determine what your needs are. You will find that a hole the size of a nail just needs some filler. Most likely, you will only need to fill in the hole with compound, let it dry, sand it, and repaint. However, if you have a larger hole, you will need to fill it in by adding extra dry wall and other fillers. You will be able to use newspaper for slightly larger holes and then cover with compound, but when it comes to the medium and larger holes, there are a few more steps to it. Sometimes you will find that it could just be in your best interest to take that piece of dry wall off the wall and hang a whole new piece. It is important that you consider what your needs are before you do anything.
As for your prep time, you will need to first decide what it is that you are using to fill in your hole. Then you will need to gather all of your supplies, and it could mean a trip to the hardware store. You will need to make sure that you save some time by getting a compound already mixed and ready to go. It is also important that you lay out all of your tools so that you don?t slow yourself down and the compound dries before it even gets on the wall.
For those who have larger holes, you will find that the compound is not enough. You are going to have to get added fillers like drywall cut to the size. You will also want to make sure that you use backing material like newspaper for slightly larger holes so that the compound will stay.
Some thing that most people do is over spackle. Keep in mind that you do not have to put a lot of compound on the wall. You will need to apply just enough to repair the hole, and the backing material should keep it in place. You will also want to keep in mind that if you use less, then you won?t have to do so much sanding. It is just in your best interest if you take your needs into consideration and use as little as possible.
Once it is filled in, you will need to just finish it off by sanding and painting.
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Thursday, August 14th, 2008
by Ethan Hunter
Unfortunately, many people believe that a home loan down payment will be so much that they can never get out of a rent situation to own a home. The good news is that this is simply untrue.
The truth of the matter is that your home loan down payment usually isn’t as much as you might think - in fact, most people estimate up to twice their actual home loan down payment, and because of this, have given up their dream of getting their own home.
However, you need to know that to secure a home mortgage; you do not necessarily have to pay a lot of money. In fact, by working with a reputable lender, you will find that you can obtain a loan immediately without high down payments.
Finding Out your Home Loan Down Payment
The best way to fully, understand the home loan down payment is by completing a loan application, talking to a good lender, and then talking about the various options. However, if you do not want to do this, you can come up with an estimation, which would depend on the type of home loan interested in, as well as the number of years in which you would take to pay the loan off.
Your home loan down payment has a few different factors and your income is one of those. The less that you make, the more money you will probably need to put down on your home. That sounds funny, but it’s very true.
Your payment also depends on your home loan down payment. If you’re willing to go with a bit higher payment each month, you can actually put less down on your loan. Nice, right?
Discovering your Home Loan Payment
How can you know what your home loan down payment is going to be for sure? First you will need to apply for a home loan and talk to your agent about what you can spend and how to do it.
You can do this in person, or online - either way, many loan offices let you speak to real people who understand that you just want a good loan, for a good home. And they’re working to help you get that, even if they end up putting in extra hours.
If you find out that your home loan down payment is a bit higher than you had wanted, don’t get upset, and certainly don’t give up. Talk to your loan agent, and level with him. Let him know what you can give up front as a down payment, and see if he can cut you some sort of deal - nine out of ten cases, your loan company is going to be willing to work with you on it, and give you what you need.
So
You should never fear a home loan down payment or listen to other people who do not know the truth. Instead, you can start the process to research the amount of money you would need to become a happy homeowner.
About the Author:
Want to get information on a Home Loan Down Payment, with having to hassle with a loan office near you? Try Low Income Home Loan and see how they can help you get the home you want. You don’t even have to leave your own living room!
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Thursday, August 14th, 2008
by Thomas Hammond
The world of personal finance is very simple compared to commercial finance. Basically, we are talking apples and oranges. Commercial loans are not only more complex, they come in different packages.
Business credit lines are similar to home equity lines in some ways. The primary difference is their use. Business credit lines are used to cover cash flow strains caused by delays between revenues coming in and bills being paid by the company.
Factoring is an area that is very unique. It is a form of financing whereby a lender essentially buys the accounts receivables of a company at a discounted rate. Instead of being required to wait 30, 60 or 90 days to get paid, a company can get money now.
Asset based loans are another common form of financing that is found in business. These loans are made as a percentage of the assets owned by a business as the name suggests. The lender also takes a security interest in those assets in case of default.
Hard money loans are often used by businesses to buy time. They are expensive with most of the cost coming in points paid on the borrowed amount. Still, a hard money loan can give a business an extra month or two to make ends meet and resolve cash flow issues.
Equipment loans are unique to the world of business. As the name suggests, these loans are made as a percentage of the total value of the equipment. Depending on the equipment, the percentage can be between 60 and 80 of the total value.
Commercial real estate loans are massively different than personal real estate loans. Lenders will make long term loans, but most are fairly static in regard to the terms. You are also only going to be able to borrow 75 percent of the total value of the property.
You are a manufacturer and need new manufacturing equipment. A capital term loan is probably your best option. The loan takes into account the cost of the equipment, the useful life of it and the overall condition of the finances of the business.
Even the lenders in the commercial world are different. While there are banks, private money is a big part of the game. Investors pool their money and make loans just like banks. Make sure you consider this option, as they can offer good terms.
Business financing is much more involved than personal finance. Know what you are getting into. Expect everything to be ten times as complex. Lots and lots of paperwork is going to be required, but it is the road to business success.
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Thursday, August 14th, 2008
by Amanda Maseko
There are just so many things to consider when you decide on a home remodeling project that you can find the task difficult; choice is good but it is best to have an idea of what effect you are hoping to achieve before you start to choose materials. The expense of remodeling can be another difficult part to deal with but it also needs careful consideration and planning. The budget does control what gets done, whether the best materials are used and even those who will do the job so it is not a subject to be rushed.
To make the whole project simpler, it is advisable to employ the services of a professional contractor who will be able to guide on prices and viability of aspects that have been discussed. Once you have employed a contractor you will need to decide who is responsible for the supplies that are to be used and this needs to be set before any work is started. If you are living close to other people you might want to consider letting them know about your remodeling plans in case there will be any disturbance. Your crucial task however, is to take very accurate measurements of all the materials you will need but remember that mistakes at this stage can be costly.
Ordering exactly what you need for your home remodeling can be difficult if you have little or no experience but if materials are incorrect then you will only have yourself to blame. Some people have definite plans about what they want to achieve with their improvements and only call in a contractor for consultation purposes. Often contractors that are employed to carry out the work may decide specialized areas of the project would be better served by sub-contractors who are experts in a particular part of the project. Under certain circumstances, a contractor may only provide a quote for a specific part of the project where the homeowner is completing the remainder of the project.
Home remodeling is a classic way for people to increase the value of their house by improving existing rooms or adding on to its current plan and often preferable to problems associated with moving. Many home improvements are based on what’s popular in a particular region or city so it is best to check to ensure what you are planning fits in well with what is happening elsewhere. Of course, if you are carrying out essential remedial work to make your home more pleasant then this will be your main priority.
Of course many people carry out home improvements to increase the market value for when it is put on the market for sale. This can be a dangerous area as there are never any guarantees that once all the effort and cost involved are taken into account there will be profit on the investment. Whilst the object of the home remodeling plan might be to raise the value of your home, there is no reason why your family cannot be involved in every aspect.
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Thursday, August 14th, 2008
by Bill Schwarz
A lot of people are looking for a home based business to supplement their incomes these days. Many of these folks even have a goal to eventually “fire the boss” and make one of these businesses their primary source of money.
Of course, when there are a lot of people looking for the same thing, there are a lot of companies around hoping to sell them what it is they’re seeking. Home business opportunities are no exception and the internet is full of them, often overwhelming new entrepreneurs with the limitless possibilities.
A good place to start when deciding whether or not to start a particular home based business is to look into the potential profits that the venture offers, but there is another important factor to remember. The new businessperson should put a lot of consideration into whether or not the opportunity is one that would be personally gratifying.
Starting and running a new business takes a lot of time and effort. Putting all of that work into something that doesn’t offer at least some job satisfaction will probably lead to misery down the road. You might as well stay at your old job if your new activity is one that you hate!
A good friend of mine started a business wherein he combined his drawing abilities with his computer skills to make personalized gifts for people looking for something unique to give their loved ones. His specific business(which he thought up all by himself)is very labor intensive and keeps him working late into the night,but he finds the tremendous positive feedback to be very gratifying.
All things considered, my friend is happy with the business he has chosen to develop. However, not everybody possesses his artistic skill(and most of us would rather not have to work the long hours that he does). However, some computer skills and a willingness to work make plenty of options available to somebody who wants to starting a personalized gift business.
The real financial benefit from operating this kind of business is the fact that customers often purchase multiple copies of products to give to all of their friends and family.This is especially true of gifts that are intended to commemorate certain events or milestones like graduations, fiftieth wedding anniversaries, the birth of a baby, and so on. In many cases most of the work goes into making the first item, so any additional copies are “gravy.”
There isn’t enough space for this little article to list the various personalized gift possibilities that are out there. It would be a good idea for new entrepreneurs to look over several possibilities before reaching a decision.
If you’re the type of person who feels you would derive a lot of pleasure from making and marketing products that you know your customers will truly enjoy giving and receiving, maybe you should look into the possibility of starting a personalized gift business. It may be just what you’re looking for.
About the Author:
Looking for a home based business to start? How about a Personalized Gift Business? I’ve found one that looks like it has the potential to be lots of fun and to eventually
make good money. I’ve built a Squidoo page about it that I invite you to look at.
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Thursday, August 14th, 2008
by Lee Dobbins
The unique style is what attracts many people to grow Bonsai trees in their home. However, some people prefer to have them decorating their outdoor landscaping. Being the same type and species of trees does not mean they won’t have different characteristics, mainly their size. Outdoor Bonsai trees will grow much larger due to their environment.
Indoor bonsais are generally certain types of tropical trees. They grow quite well indoors. These trees can be placed outdoors for a period of time during the spring or late summer.
There are just a few species of Outdoor Bonsais. Of these, there are 2 categories, evergreen and deciduous. Juniper and Pine are examples of evergreens, which are dormant during cold weather with new growth occurring in the spring. Deciduous trees lose their leaves during the fall but do not become dormant.
Planting Outdoor Bonsai trees directly into the ground is fine but they can be kept in containers if you prefer. Although the trees do not thrive while being kept indoors for extended periods of time, special care needs to be taken to make sure they do not freeze. Keeping your outdoor Bonsai tree watered is a key to its survival. Though the soil underground will be moist, the topsoil may appear to be too dry.
As is the case with most types of trees, a change in their habitat when you bring them home could cause some minor setbacks. Instead of making any drastic changes right away, give them a chance to get used to their new surroundings. A change in color or loss of some foliage is common but will usually be a short setback.
Trees need a regular care regimen that includes trimming and pruning. They also need repotting when they are in containers. Check to see if the roots have filled the pot. This means the tree has no more room to grow and may need repotting.
Correct watering of your outdoor Bonsai is important. If your bonsai is potted, you can simply put your finger about one inch into the soil to check the water the level. If you find that the soil feels dry, water your tree until you notice that the water is flowing from under the pot. If your tree is planted in the ground, you will need to gauge the amount of water needed based upon the amount of rain in the area, or you can simply use your personal judgment. During winter, watering outdoor bonsai trees should be done with care. If it is under 45 degrees, do not water your tree. It could cause growth to stop and ruin your tree. If the trees require watering during the winter, the temperature needs to be at least 45 degrees or the tree could be damaged. The tree could freeze and stop growing if this is not done properly.
Outdoor Bonsai trees are gaining in popularity as well as indoors. Many people have a few, sometimes more. Growing the outdoor tree is a rewarding pastime and give you a beautiful yard that you can enjoy for years to come.
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