Investing in Foreclosures with Your Self-Directed IRA
Any news report will alert you to the fact the home foreclosures are on the rise. If you have untapped funds just sitting in your Self-Directed IRA LLC account, now is a great time to invest in foreclosures. Following are three reasons why.
3 Reasons Now is a Great Time to Invest in the Foreclosure Market
Prices are Low Now: Every real estate investor will tell you that to make money investing in foreclosures, you need to find good deals. What is defined as a “good deal?” A simplistic answer is a good deal is one where you make money. Making money in real estate is all about equity; buying homes that have equity.
As adjustable rate mortgages adjust up, the economy worsens and more people lose jobs, homeowners become more willing to negotiate. This means the elusive good deal is easier to come by.
Banks Are Not Set Up to Be Landlords: Banks don’t want to own homes. They want the money from the mortgage. Right now, banks are being overrun with properties and they are trying desperately to unload them as fast as they can.
Because they usually wind up losing money - in two different ways. First, there’s nobody paying the mortgage when house is sitting empty. This cost banks. Secondly, when a house is in foreclosure, the bank is responsible for keeping it up until it sells. This means hiring contractors to mow the lawn, fix broken windows, clean up and haul away traffic from previous owners, etc. So, they’re quite eager to sell, sell, sell.
Long-Term Gain: Just like in the stock market, investing is a patient person’s game. If you use funds from your Self-Directed IRA LLC account to invest in foreclosures now, when the market is hot again, you’ll be perfectly positioned to reap the gains.
