Posts Tagged ‘real estate ira’

Are You In A Buyers Market Or A Sellers Market?

Tuesday, April 22nd, 2014

Buyer or Seller Market

Are you currently looking to sell your real estate that is in a self directed IRA? Maybe you are looking to buy real estate in your self directed IRA? Either way it is a great idea to know if you are in a buyers market or sellers market? New comprehensive research done by Zillow breaks down the United States and analyzes different metrics to decide which areas are buyers' markets and which are sellers' markets.

It may be a fairly obvious what a buyer's and seller's market is but so everyone is on the same page let's explain it. A buyers market means that those buying a home have a strong bargaining position compared to the seller. In a sellers market it is the exact opposite, the seller has a strong bargaining position compared to the buyer. The best example of these markets is as follows: Typically in a sellers market the homes are selling within days and often receive multiple offers. In a buyers market there are plenty of homes on the market that aren't receiving offers and have been on the market for a bit of time.

Knowing the difference between the two markets let's you know how to procede if you are a buyer or seller.  Let's get back to the research done by Zillow compares the top 35 largest metro areas and breaks down the top 10 sellers' markets and top 10 buyers' markets.

Top 10 Sellers' Markets

  1. San Jose
  2. San Francisco
  3. San Antonio
  4. Los Angeles
  5. Seattle
  6. Riverside
  7. Denver
  8. Washington, D.C.
  9. Sacramento
  10. Dallas, Fort Worth


Top 10 Buyers' Markets

  1. Cleveland
  2. Philadelphia
  3. Tampa
  4. Chicago
  5. Pittsburgh
  6. Cincinnati
  7. New York
  8. Detroit
  9. Baltimore
  10. St. Louis


The findings show that the West is typically a sellers market and the East is typically a buyers market and the West is a sellers market.  

Now that you know if you are in a buyers or sellers market you should have an idea of what you should do with your real estate IRA. Should you sell your real estate IRA property or hold off until it is more of a sellers market? Make the most of your retirement by making sure you make the right moves when purchasing and selling your real estate inside your self directed IRA. If you sell at the right time and buy at the right time your self directed IRA will have a much stronger benefit.

If you need help setting up a self directed IRA also known as a real estate IRA so that you can purchase real estate in your retirement account then we can help. We provide high quality professional account set up along with account maintenance. You can be assured that your self directed IRA is set up correctly and maintained properly so that you can invest in that rental property you always wanted. Get the most of your retirement now!

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Self Directed IRA for Real Estate Investing Update

Friday, August 2nd, 2013

Real Estate Trends & Self Directed IRA’s

What Has the Trend Been For Real Estate and What This Means For Self Directed IRA’s

The housing market has had its fair share of ups for quite a while but did produce quite a disappointment with a starts declining 9.9%. There was also a decline in building permits in June compared to May.

What is causing this?

It appears that one of the biggest factors for the decline in starts was due to multi-family starts. Multi-family starts dropped 26.2%, while single-family starts dipped only 0.8%.  Looking at permits we see that multi-family construction declined 21.4%, while permits for single-family starts only decreased 0.6%.

Insights for Self Directed IRA Real Estate

As we have said time and time again we really feel that we seem to have formed the bottom with support in the real estate market. Even though we see that the market went down in June overall things are looking pretty good. Prices still haven’t settled but there is stability. We are seeing inventories move and liquidity is improving.

For those self directed IRA real estate investors looking for a buying opportunity now is a great time for hard asset investing. With worries and talk of stock market crash and the strength of the US dollar as weak as ever, moving to hard asset investing is smart.

It will be interesting to see what the next couple of months hold for the real estate industry but it is still recommended to hold investment real estate because of inflation, asset appreciation and income.

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Real Estate Trend Update And Self Directed IRAs

Sunday, October 21st, 2012

The Sept 2012 housing starts numbers are out and they show a significant change of 15% month to month change. Before everyone starts singing Happy Days Are Here Again, these numbers need to be put into proper perspective.

First of all this is a very large number the likes of which have not been seen in quite some time. It could be a anomaly. The statistical margin of error for this numbers is 14.2%. This means that the series has the potential to be off and may prove so with the revisions over the next two months.

Another issue to keep in mind is that potential home buyers are still under significant restraint due to the inability to get lending for homes.

That being said, the data in chart 1 shows that we do have some support levels and are beginning to show an upward trend.

Chart 1

What does this mean for real estate in self directed IRAs

Any self directed IRA real estate investors that have purchased property ion the last 1-2 years, should take some solace in the fact that we seen to have formed a bottom with support in the real estate market. This does not necessarily mean that prices have settled, but there is some correlation. Stability means that inventories are moving, which means there is demand there and liquidity is improving.

For those self directed IRA real estate investors looking for a buying opportunity, this has to be the time. As we’ve discussed in prior postings, QE3 is alive and well, stock market confidence is low, fear of inflation is high, gold prices are moving up, and the strength of the US dollar is as debased and weak as ever. All of these factors paint a picture in support of hard asset investing.

Recommendations for self directed IRA real estate investors

Holding investment real estate is still highly recommended for inflation hedge and income and asset appreciation.

Enter into trust deed arrangements is still very good. Liquidity is still tight. Demand is still there.

Disclaimer: The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.

Inflation Shows Its Taking Hold And What This Means For Self Directed IRAs

Sunday, October 14th, 2012

Wholesale inflation shows that prices increased by 4.7% for energy related goods and 0.2% for food. That is a total of 4.9% annual increase in the price of energy and foods. Core inflation (what the good ‘ol Fed and government uses) shows around 2.3%.

What does this mean?

What these numbers reflect is:

1. Inflation that the average Joe lunch bucket experiences is much higher than what the government tells us.

2. Inflation is quite large and significant

The Fed and the President continue to attempt to tell us that they are implementing policies that are going to fix the economy (a/k/a jobs, employment). Yet, they report false, misleading numbers that do not match what we see and experience when we engage in the economy (buying goods and services – getting stuff).

The numbers show that inflation is running at something like 6-7% per year when you factor energy and food. For some inexplicable reason, the government does not think those things count when measuring inflation. However, consumers are experiencing these levels of inflation. Additionally, incomes are not anywhere near these annual levels of increases. Compound this with the fact that savers (low risk investors, retired people,, etc) cannot even make 1/2% of interest in their savings due to the government’s low interest policies.

Self Directed IRA investment recommendations

Despite what many on Wall Street and the government tell you, precious metals continue to be a must have in your self directed IRA account. Metals are the ultimate inflation hedge.

Hard assets in your self directed IRA are also critical. We continue to recommend that people hold tangible investments such as loans, real estate, tax liens, deeds of trust, or small business ownership. These assets will be held away from the direct manipulation of Wall Street and the government. These are investments that you know and understand.

Disclaimer: The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.

Inflation Outlook Update & Its Impact on Self Directed IRAs

Sunday, September 30th, 2012

The Fed just recently announced that it will continue investing/printing $40B per month until the jobs picture improves. Two points about this :

1. This is confirmation that the programs and policies of the Fed and the current administration have not worked.

2. The basic prescription is that we should all continue to be punished for not spending more and therefore, the government is going to make us all take on more debt per person, via government printing, until our attitudes improve.

We believe that this approach falls into the the old adage of the definition of insanity is doing the same thing over and over again expecting a different result. That’s what the Fed and the administration are doing. They are going to continue to engage in the same practices of printing money and deficit spending thinking that at some point its going to work, even though it has not worked to date. For those of you who would argue that there has been improvement, I will contend that the improvement is in spite of government intervention and the fact that the Fed is engaging in a new, more aggressive program because of their actual statement of a very poor jobs market it evidence and an admission that it is not working.

What this means for inflation

To date, the Fed continues to report that inflation is in check and well within reasonable boundaries. We contend that inflation is not in check and is not within reasonable boundaries. Our reasoning is that the Fed continues to incorrectly factor the cost of energy into their equation. Secondly, they are ignoring the fact that many people are now working for lesser salaries than they were in 2008. Thirdly, most families net worth has shrunk by 10-20% of the pre-2008 levels. Fourthly, most peoples incomes are not even growing at the rate of inflation, and lastly, most people cannot invest and make 1-2% of of savings per year.

This all boils down to the fact that inflation is higher than the Fed tells us and peoples incomes are shrinking or not growing. This all has the affect of making goods and services more expensive for the average consumer. Therefore, we do have real inflation.

The coming flood and potential for hyperinflation

The Government has created $16T of debt. The government wants to spend another $40B per month. The government wants to continue printing and forcing money into the economy because things are not improving. At some point this money will start working its way into the economy and there is a lot of it. Once that starts happening, people will start holding that money in the form of debt and spending. This will lead us to think that happy days are here again. That spending activity will translate into price inflation for goods and services as all of these excess Fed dollars start chasing fewer goods and services. Its simple math and economics to see that prices could and will likely result in hyper inflationary levels.

Self Directed IRA recommendation

We foresee continued inflationary pressure on prices in the near and long term. Most of this price inflation will likely take hold mid 2013 and into 2014. We are already seeing the spike in gold and silver in response to the latest fed actions.

We see the prices for real estate to continue to stabilize. As the excess Fed dollars and low interest rates start to finally take effect, we think you will see more price stability and maybe higher than expected price increases in real estate.

We continue to see sluggishness in the job market, despite the Fed printing. 25% of the work force is not working. They have aged. They have not developed new skills. These structural disconnects will make it difficult to get people back to work and the ones that do, will not necessarily be coming back into high paying jobs like the pre-2008 levels. This will continue to make these people more oriented towards being savers and renters as there has been a permanent mind shift in the American public as a result of this recession.

Our recommendations

1. Continue to invest and hold precious metals in your Self Directed IRA.

2. Real estate will continue to look attractive for rental income and price appreciation may take hold. Its not clear to what extent price appreciation could materialize. You should be looking for real estate investment opportunities with your Self Directed IRA.

3. Private lending will continue to be a good opportunity for Self Directed IRAs. Despite the flood of Fed dollars, price inflation will be problematic for people, and they will continue to be under financial pressure due to be held in lower paying jobs with higher inflation. They will struggle to get lending from institutions. However, these same people will be more conservative than pre-2008. There will be good lending opportunities if you look, and qualify the right candidates.

Overall inflation risk is high. Hard asset investing in Self Directed IRAs is still critical to your overall portfolio strategy.

Disclaimer: The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.